I need an understanding of these statements:
1. Is it true during times of high unemployment trade restrictions should be imposed to protect domestic employment?
2. Is it true the only way the standard of living can increase is to increase the quantity of labor and/or capital?
3. Is it true the "mark to market rule" has had little impact on banks and insurance companies over the last few years?
4. Is it false an increase in corporate income taxes increases the investment in physical capital for any given interest rate?
1.Is it true during times of high unemployment trade restrictions should be imposed to protect domestic employment? -- TRUE. This would decrease the amount of imports, which would spur domestic production and help to decrease unemployment.
2. Is it true the only way the standard of living can increase is to increase the quantity of labor and/or capital? -- TRUE. This usually happens through capital because so many different factors are included in the term "capital." By increasing capital, we're increasing the level of innovation, production, output, and other elements that directly raise the standard of living due ...
This solution explains whether each statement listed is true or false and provides a thorough explanation.
Q.1) If you were the finance Minister of Never-Never Land, how would you estimate the long-run exchange rate of your currency? Defend your choice as well as discuss its possible failings.
Q.2) What are the positives and negatives of protectionist trade policies on the part of the federal government? Which policy do you think is best right now?
Q.3) How do changes in interest rates, inflation, productivity, and income affect exchange rates? Is a strong U.S. dollar always good for the U.S. and global economies? Why or why not?View Full Posting Details