Chapter 13

3) The single most important reason for Canada's seeking a free trade agreement with the United States was to

A) ensure its access to the U.S. market.

B) ensure its ability to join NAFTA.

C) harmonize its environmental laws with the United States.

D) avoid international outsourcing in low wage countries.

4) Estimates of U.S. job gains and losses due to free trade agreements

A) show no change in jobs.

B) show clear gains in the number of jobs.

C) show clear losses in the number of jobs.

D) show mixed results, leading to no clear conclusion.

to trade, and give specific examples of how imports may create jobs and exports may occur after a loss of jobs.

1) Fiscal policy is

A) the selling of government bonds by the Treasury.

B) the deliberate manipulation of the money supply designed to affect the interest rate.

C) the deliberate manipulation of taxation and spending designed to affect the economy.

D) the selling of foreign exchange reserves designed to change the exchange rate.