Author Question: Capital flight A) increases reserves. B) is never associated with the expectation of ... (Read 119 times)

dollx · **on:** Jun 30, 2018

Capital flight

A) increases reserves.
B) is never associated with the expectation of devaluation.
C) may undo expected devaluation.
D) reduces losses during a devaluation scare.
E) decreases reserves and may induce devaluation.

Question 2

A specific tariff provides home producers more protection when

A) the home market buys cheaper products rather than expensive products.
B) it is applied to a commodity with many grade variations.
C) the home demand for a good is elastic with respect to price changes.
D) it is levied on manufactured goods rather than primary products.
E) the home supply outnumbers the foreign imports.