After the Sharp Drop in Oil Prices, the U

question 102

Multiple Choice

After the sharp drop in oil prices, the U.S. Congress considered enacting a tariff on imported oil. According to proponents, such a tariff would do all of the following except

• A) help reduce the federal budget deficit.
• B) help strengthen the foreign trade deficit.
• C) prop up a sagging domestic oil industry.
• D) help cut the foreign trade deficit.
• E) create a trade restriction.

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Definitions:

Future Payment

A payment that is scheduled to be made at a specified date in the future.

Interest Rate

The cost of borrowing money, usually expressed as a percentage of the amount borrowed.

Net Earnings

The amount of income left after deducting all expenses, taxes, and costs from gross revenue.

Continuous Future

A futures contract that amalgamates several expiry contracts to create a continuous, extended trading period for investors.