_ l 1. Which of the following international trade theories species the importance of maintaining a forward momentum to prevent liberalization efforts from being stalled? a. Big push theory 1). Bicycle theory c. Sidewalk theory d. Balanced growth theory e. Take-off theory _ 12. The mechanism used by the government of a country to nance the budget decit by monetizing the debt is also called: a. discounting. b. printing money. c. raising reserve requirement. (1. external borrowing. e. lending. _ 13. Which of the following is true about tariffs? a. It is an aid given by the government to import-competing industries. b. It is a production subsidy. c. It is a tax on imported goods collected by the government. d. It is a protection against dumping. c. It is a safeguard law used by the GATT member countries to combat unfair trade practices. _ 14. If a country has most of its imports in a category with very low tariffs but has many import categories with high tariffs and virtually no imports, then the would indicate a low level of protection. a. two-part tariff b. trade-weighted average tariff c. tariff on dutiable imports d. simple average tariff e. prohibitive tariff 15. In the 1980 and 1990s, when the European Exchange Rate Mechanism (ERM) was in place, countries were in practice xed to the a. German deutschmark b. Italian Lira c. French francs d. British pounds 8. Danish Krone