Statistical evidence suggests that A) free trade policies ...

[biggirl4568]

Statistical evidence suggests that
 
  A) free trade policies promote economic growth more effectively than do import substitution policies.
  B) import substituting policies tend to promote effective exploitation of scale economies.
  C) import substitution tends to lead to relatively low effective rates of protection.
  D) import substitution is to this day the preferred growth strategy promoted by the World Bank.
  E) import substitution proved to be the most effective aid for developing countries before 1970.

Question 2

Under the monetary approach to exchange rate theory, money supply growth at a constant rate
 
  A) eventually results in ongoing price level deflation at the same rate, but changes in this long-run deflation rate do not affect the full-employment output level or the long-run relative prices of goods and services.
  B) eventually results in ongoing price level inflation at the same rate, but changes in this long-run inflation rate do affect the full-employment output level and the long-run relative prices of goods and services.
  C) eventually results in ongoing price level inflation at the same rate, but changes in this long-run inflation rate do not affect the full-employment output level or the long-run relative prices of goods and services.
  D) eventually results in ongoing price level inflation at the same rate, but changes in this long-run inflation rate do not affect the full-employment output level, only the long-run relative prices of goods and services.
  E) eventually results in ongoing price level deflation at the same rate, but changes in this long-run deflation rate do not affect the full-employment output level, only the long-run relative prices of goods and services.

[epscape]

Answer to Question 1

A

Answer to Question 2

C

[biggirl4568]

Excellent

[Sarahjh]

TYSM