21. An elimination of tariffs on goods imported into Moldavia increases its budget deficit. Which of the following would definitely be a long run result of these changes to the Moldavian macroeconomy? I. II. III. The real interest rate in Moldavia rises. The real exchange rate in Moldavia rises. The level of net exports in Moldavia falls. a. I, II, and III b. I and III only c. d. III only II and III only

21. An elimination of tariffs on goods imported into Moldavia increases its budget deficit. Which of the following would definitely be a long run result of these changes to the Moldavian macroeconomy? I. II. III. The real interest rate in Moldavia rises. The real exchange rate in Moldavia rises. The level of net exports in Moldavia falls. a. I, II, and III b. I and III only c. d. III only II and III only

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 21SCQ: Explain briefly whether each of the following would be more likely to lead to a higher level of...

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1._______ The total value of a nation’s exports minus thetotal value of its imports over some period of time.2._______ The ability to produce a specific product moreefficiently than any other nation.3._______ Selling and shipping raw materials or products toother nations.4._______ The ability to produce a specific product moreefficiently than any other product.5._______ All business activities that involve exchangesacross national boundaries.6._______ The total flow of money into a country minus thetotal flow of money out of that country over thesame period of time.7._______ A tax levied on a particular foreign product entering a country.8._______ A complete halt to trading with a particular nationor in a particular product.9._______ An international barter transaction.10. _______ An internationally supported bank that providesloans to developing countries to help them grow.a. countertradeb. foreign exchange controlc. multilateral development bank (MDB)d. absolute advantagee. import…
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