QUESTION 21

If the U.S. levies a 35% tariff on imported steel, in the long-run:

		Inflation will decrease
		the U.S. economy will grow more rapidly
		employment in the U.S. economy will grow more rapidly
		the steel industry will benefit
		all of the above.

1 points

QUESTION 22

If the U.S. levies a 35% tariff on imported steel, in the long-run:

		Inflation will decrease
		the U.S. economy will grow more rapidly
		employment in the U.S. economy will grow more rapidly
		U.S. imports of merchandise will tend to decrease
		the deficit on current account will tend to widen.

1 points

QUESTION 23

If U.S. residents increase their purchases of European goods and services, the Euro will appreciate against the USD other things equal.

		TRUE
		FALSE.

1 points

QUESTION 24

Which of the following monetary arrangements best characterizes the dollar-euro exchange rate?

		a pegged rate
		a crawling peg
		a floating rate
		none of the above.

1 points

QUESTION 25

The U. S. BOP shows a deficit on the financial account.

		TRUE
		FALSE.