Politicians Often Argue for Tariff Increases in Order to Reduce

question 136

Multiple Choice

Politicians often argue for tariff increases in order to reduce the size of a balance of trade deficit. If tariffs are increased, the long-run effect is most likely to be:

• A)​a decrease in both U.S.imports and exports.
• B)​an increase in both U.S.imports and exports.
• C)​an decrease in U.S.imports, and an increase in U.S.exports.
• D)​an increase in U.S.imports, and a decrease in U.S.exports.

Understand the challenges and strategies in involving family members in the problem-solving process.

Gain insight into the specific issues affecting lesbian and gay families, including coming out and facing homophobia.

Understand the components and purposes of various short-term financial tools such as bank lines of credit, compensating balances, and commercial paper.

Identify the different types of collateral and their usage in securing loans.

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Definitions:

Long-Term Interest Rates

Interest rates applied to loans or financial assets that are due for repayment in a period longer than one year.

Risk Premiums

The additional return demanded by investors for taking on higher risk, over and above the risk-free rate of return.

Real Risk-Free Rate

The interest rate on a risk-free asset, after adjusting for inflation, indicating the true return on a risk-free investment.

Inflationary Expectations

Anticipations of future inflation that can influence economic behaviors in the present.