This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Fiscal policy is A) the selling of government bonds by the Treasury. B) the deliberate ... (Read 61 times)

theo

  • Hero Member
  • *****
  • Posts: 698
on: Jun 30, 2018
Fiscal policy is
 
  A) the selling of government bonds by the Treasury.
  B) the deliberate manipulation of the money supply designed to affect the interest rate.
  C) the deliberate manipulation of taxation and spending designed to affect the economy.
  D) the selling of foreign exchange reserves designed to change the exchange rate.

Question 2

Explain how a country with no absolute advantage can gain from trade.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ricroger

  • Sr. Member
  • ****
  • Posts: 352
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

Even if a country cannot produce absolutely more of a good, it can still have a comparative advantage. This means that it is relatively better at producing a given good. Thus if it specializes in producing the good that it produces at a relatively lower cost and trades for goods that it can only produce at a relatively higher cost, it will gain from trade.


theo

  • Hero Member
  • *****
  • Posts: 698
Reply #2 on: Jun 30, 2018
Correct answers!


ricroger

  • Sr. Member
  • ****
  • Posts: 352
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Common hydrogen bonds in biological systems Common hydrogen bonds in biological systems
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it. In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
The world attempted to deal with Somalia as if it were a real country but painfully learned that Som The world attempted to deal with Somalia as if it were a real country but painfully learned that Som
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
Exterior View of Tholos, The So-called Treasury of Atreus Exterior View of Tholos, The So-called Treasury of Atreus
Growth of Government Spending, 1870–2009 Growth of Government Spending, 1870–2009
Video: Mendel's Principles of Dominance, Segregation and Independent Assortment

For a complete list of videos, visit our video library