The Mercantilism Policy Failed to Generate Gains from Trade for Countries

question 14

Multiple Choice

The mercantilism policy failed to generate gains from trade for countries which adopted it because of:

• A)increases in consumer spending.
• B)high levels of federal debt.
• C)supply-side shocks from the oil-exporting countries.
• D)runaway inflation in the U.S.
• E)retaliations from other countries.

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Definitions:

Substantial Deviations

Major divergences or departures from a set path, standard, or expected norm.

Material Breach

A significant violation or failure to perform one's obligations under a contract, which justifies the non-breaching party's termination of the contract.

Discharge by Performance

The termination of contractual obligations by fully executing the duties and responsibilities outlined in the contract.

Contractual Duty

A legal obligation in a contract requiring a party to act or not act in a certain way.