All of the following are differences in capital flows today from the past, EXCEPT
A) the increasing variety of financial instruments.
B) the larger number of companies listed on world stock exchanges.
C) the need to protect from sudden changes in currency values.
D) the problem of volatility in financial capital flows.
E) the reduction in transaction costs for foreign investment.
Question 2
Which of the following is NOT correct about the effects of a tariff on an imported product?
A) Tariffs benefit domestic producers by raising price and domestic output.
B) Tariffs increase government revenue.
C) Tariffs mean higher prices and less consumption for consumers of the product.
D) Tariffs increase the efficiency of how resources are allocated.
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