Using Trade Restrictions to Protect Special Interests Such as the U.S

question 98

Multiple Choice

Using trade restrictions to protect special interests such as the U.S. auto industry

• A) results in lower prices for U.S. auto consumers.
• B) raises the prices that U.S. consumers must pay for autos.
• C) is a very cost-efficient way of dealing with trade problems.
• D) is the best long-term solution for threatened U.S. jobs.

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Definitions:

Inflation Targets

Specific, publicly announced goals for the annual rate of inflation that central banks aim to achieve and maintain to guide monetary policy.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time.

Fed Attention

The focus or monitoring by the Federal Reserve, the U.S. central bank, on various economic indicators and conditions to make monetary policy decisions.

Rational Expectations

A theory in economics that suggests individuals make predictions about the future based on all available information, incorporating their understanding of economic policies and trends.