A Government That Imposes Controls on the Importation of Goods

question 32

True/False

A government that imposes controls on the importation of goods and services often does so for balance of payments reasons.

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to changes in revenue, indicating the degree of fixed versus variable costs.

Fiscal Policy

Government policies regarding taxation and spending to influence the economy.

Monetary Policy

The actions of a central bank, currency board, or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates.