Author Question: Expenditure-switching policies designed to improve a current account deficit A) turn domestic ... (Read 92 times)

michelleunicorn · **on:** Jun 30, 2018

Expenditure-switching policies designed to improve a current account deficit

A) turn domestic spending towards domestic goods.
B) reduce the overall level of demand in the economy.
C) turn domestic spending towards foreign goods.
D) increase the overall level of demand in the economy.

Question 2

Based on Table 4.1, according to the Stolper-Samuelson Theorem, the income distribution effects of free trade in the United States are likely to favor

A) capital.
B) labor.
C) either capital or labor, depending on U.S. productivity.
D) neither capital nor labor.