Author Question: A possible reason a nation might impose a protectionist policy such as a tariff is to A) ... (Read 111 times)

karen · **on:** Jun 29, 2018

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.