The National Security Argument Is Used by Those Who Assert

question 29

Multiple Choice

The national security argument is used by those who assert they want to

• A) increase imports as a way of strengthening their country.
• B) increase exports as a way of earning money to strengthen their country.
• C) limit imports that compete with domestic producers important for national defense.
• D) limit exports to control the flow of technology to third world nations.
• E) limit all imports.

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Definitions:

American Imports

Goods and services brought into the United States from other countries for sale.

International Value

The worth of a goods, services, or financial instruments in the international market.

Open Market Purchases

Transactions where a central bank buys government securities from the market to increase the money supply and stimulate economic activity.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, central banks, or other governing bodies.