The Economic Policy of Lowering Tariffs and Other Barriers to Encourage

question 24

Multiple Choice

The economic policy of lowering tariffs and other barriers to encourage trade and investment is known as:

• A) liberalization.
• B) globalization.
• C) capitalism.
• D) multinationality.

---

Definitions:

Misery Index

An economic indicator calculated by adding the unemployment rate to the inflation rate, aiming to measure economic distress felt by everyday people.

Nominal Interest Rate

The rate of interest before adjustment for inflation, as opposed to the real interest rate, which is adjusted.

Expected Rate

The anticipated return or yield on an investment, saving account, or financial product, often used in planning and financial projections.

Inflation

The hike in the broad cost of goods and services, resulting in a reduction of purchasing leverage.