Which of the Following Is True of Voluntary Export Restraints

question 27

Multiple Choice

Which of the following is true of voluntary export restraints? 

• A) It is an extra tax imposed by a country on its exports. 
• B) It is an example of a tariff barrier. 
• C) It is a government payment to domestic firms. 
• D) It is an export quota levied by a country on the quantity of its exports.

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Definitions:

Real Discount Rate

The rate used to discount future cash flows to their present value, adjusting for inflation.

Nominal Discount Rate

The rate of interest quoted or advertised on a loan or investment, not adjusted for inflation.

Inflation

The speed at which overall prices for goods and services increase, leading to a decline in purchasing power.

Nominal Interest Rates

The rate of interest before adjustment for inflation, representing the face value of borrowing costs or investment returns.