Author Question: According to the Keynesians, a. an easy-fiscal tight-monetary policy reduces the trade deficit, ... (Read 19 times)

stevenposner · **on:** Jun 30, 2018

According to the Keynesians,

a. an easy-fiscal tight-monetary policy reduces the trade deficit, such as what occurred during the 1980s.
b. an easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s.
c. there was not a link between the rising government budgetary deficit and the rising trade deficit during the mid-1980s.
d. budget deficits and trade deficits should not be a source of concern

Question 2

What is/are the central argument(s) against tariffs?

(a) They redistribute income away from consumers who are paying higher prices because of the tariffs. These rents are given to the individual industries that are protected by the tariffs and
are operating inefficiently.
(b) A laissez-faire economy is the American way.
(c) They protect the wealthy.
(d) They benefit only fast-growing industries.