Used alone, an expenditure-switching policy that turns spending from foreign goods to domestic goods
A) will not reduce the current account deficit.
B) is likely to cause a recession.
C) will be likely to increase the current account deficit.
D) is likely to increase domestic inflation.
Question 2
If the price of a good rises, then the effect on the income of the factors that are used intensively in its production will be
A) to raise income by an absolute amount that is less than the rise in prices.
B) to raise income by an absolute amount that is more than the rise in prices.
C) to raise income by a smaller percentage than the rise in prices.
D) to raise income by a greater percentage than the rise in prices.
A domestic Muscovy Duck with wings outstretched
Examples of b-turns
Environmental policy
Ecosystem goods and services and monetary values
Growth of Government Spending, 1870–2009