« previous next »

Author Question: Write an essay on the national defense argument for tariffs. Include in your discussion points in ... (Read 69 times)

berenicecastro

  • Hero Member
  • *****
  • Posts: 581
on: Jun 30, 2018
Write an essay on the national defense argument for tariffs. Include in your discussion points in favor of this idea as well as problems with its implementation. Is protection the best policy to achieve the stated ends? Explain.
 
  What will be an ideal response?

Question 2

Explain how an increase in government spending would affect the DD-AA schedule in the short run.
 
  What will be an ideal response?


Chocorrol77

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 30, 2018
Answer to Question 1

The national defense argument is legitimate in those cases where domestic production is required. Problems include use in inappropriate situations as well as deadweight costs. A better policy would be to subsidize domestic production or subsidize imports during peace time.

Answer to Question 2

An increase in government spending will increase aggregate demand, which will shift the DD to the right. If AA remains unchanged, the new equilibrium will be at a higher Y and lower E. Since E is the nominal exchange rate, a lower E is an appreciation of the currency.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Mitosis + Check Points 2 of 5 Mitosis + Check Points 2 of 5
Upper Paleolithic stone tools include blade-based tools as seen here being produced from a blade cor Upper Paleolithic stone tools include blade-based tools as seen here being produced from a blade cor
The constitutional division of Powers Between the National Government and the States The constitutional division of Powers Between the National Government and the States
Video: Hydrogen bonds vs. Ionic bond

For a complete list of videos, visit our video library