A possible reason a nation might impose a protectionist policy ...

[karen]

A possible reason a nation might impose a protectionist policy such as a tariff is to
 
  A) encourage specialization in the good in which the nation has a comparative advantage.
  B) protect an infant industry from foreign competitors.
  C) increase the level of imports.
  D) slow domestic production.

Question 2

If the current account balance has a 70 million deficit and there was no change in official reserves during that year, then we know that
 
  A) net transfers were -70 million.
  B) the capital account balance must have a 70 million deficit.
  C) the balance of payments must register a 70 million surplus.
  D) the official settlements account balance must have a 70 million surplus.
  E) the capital and financial account balance must have a 70 million surplus.

[tuate]

Answer to Question 1

B

Answer to Question 2

E

[karen]

Thanks for the timely response, appreciate it

[Jossy]

Great answer, keep it coming