Author Question: The main redistribution effect of a tariff is the transfer of income from A) domestic producers ... (Read 37 times)

V@ndy87 · **on:** Jun 30, 2018

The main redistribution effect of a tariff is the transfer of income from

A) domestic producers to domestic buyers.
B) domestic buyers to domestic producers.
C) domestic producers to domestic government.
D) domestic government to domestic consumers.
E) foreign producers to domestic consumers.

Question 2

Under the gold standard, if the dollar price of gold is pegged at 35 per ounce and the euro price of gold is pegged at 12 euro per ounce, what is the dollar/euro exchange rate?

What will be an ideal response?

zoeyesther · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

B

Answer to Question 2

The dollar/euro exchange rate must be constant and equal to
(35 per ounce) / (12 euro per ounce) = 2.92 per euro.