Author Question: Many economists argue that the sharp reduction in U.S. net exports in the mid 1980s was due to A) ... (Read 71 times)

cagreen833 · **on:** Jun 30, 2018

Many economists argue that the sharp reduction in U.S. net exports in the mid 1980s was due to

A) expansionary U.S. monetary policy.
B) contractionary U.S. monetary policy.
C) expansionary U.S. fiscal policy.
D) contractionary U.S. fiscal policy.

Question 2

The invocation of beggar-thy-neighbor arguments with respect to industrial policies

A) strengthens the argument for subsidies.
B) makes sense if the international Keynesian multipliers exceed unity.
C) applies only to rich countries most of whose trade partners are very poor countries.
D) weakens the argument for subsidies.
E) does not apply to rich countries who can influence relative world prices.