_______ Is Not Consistent with the Central Beliefs of Mercantilism

question 30

Multiple Choice

_______ is not consistent with the central beliefs of mercantilism.

• A)Government should intervene to achieve a surplus in the balance of trade
• B)Policies should be put in place to encourage exports and discourage imports
• C)Imports should be limited by tariffs and quotas
• D)Exports should be subsidized
• E)Local manufacturing companies should be protected from foreign competition

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Definitions:

Dollar

The official currency of the United States, also used as a standard monetary unit in many other countries.

U.S. Net Capital Outflow

The difference between the purchase of foreign assets by U.S. citizens and the purchase of U.S. assets by foreigners, reflecting the flow of capital from and into the U.S.

U.S. Saving

The portion of income that individuals, businesses, and the government in the United States set aside rather than spending it immediately.

National Saving

The sum of private and public savings in a country, representing the total income remaining after expenditures on goods and services.