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Author Question: What are the rationales for protectionist policies? What will be an ideal ... (Read 97 times)

james

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on: Jun 29, 2018
What are the rationales for protectionist policies?
 
  What will be an ideal response?

Question 2

Describe the channels through which an open market sale of bonds by the Fed affects output in a closed economy.
 
  What will be an ideal response?


kescobar@64

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The rationales for protectionist policies are to shield workers from foreign competition, to nurture infant industries, and to help domestic firms establish monopolies in world markets.

Answer to Question 2

An open market sale of bonds leads to a leftward shift in the money supply. As a result, interest rates increase, which in turn reduce investment. The lower levels of investment translate into lower output levels.


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james

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Reply #2 on: Jun 29, 2018
Thank you :)


kescobar@64

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Reply #3 on: Jun 29, 2018
Happy to help you


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