If in the Long Run, Imports Are Paid for by Exports

question 153

Multiple Choice

If in the long run, imports are paid for by exports, then

• A) any restriction of imports ultimately reduces exports.
• B) any restriction of imports ultimately expands exports.
• C) any restriction of imports has no impact on exports.
• D) any restriction of exports has no impact on imports.

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Definitions:

Commercial Applicability

The suitability or potential of a product or invention to be used, marketed, or sold in a commercial context.

Expected-Rate-of-Return Curve

A graphical representation showing the expected return on investment for varying levels of risk or different scenarios.

Interest-Rate Cost-of-Funds Curve

A graphical representation showing the relationship between the cost of funds for financial institutions and the interest rates over different periods.

Optimal R&D Expenditures

The level of spending on research and development that maximizes a firm's profit or efficiency while being sustainable in the long term.