An increase in the use of quotas is expected to: A) reduce the country’s current account...

An increase in the use of quotas is expected to:

A) reduce the country’s current account balance, if other governments do not retaliate.

B) increase the country’s current account balance, if other governments do not retaliate.

C) have no impact on the country’s current account balance unless other governments retaliate.

D) increase the volume of a country’s trade with other countries.

Expert Solution

Ans.

Here is correct answer is option (B)

That is

increase the country’s current account balance, if other governments do not retaliate.

If you have any problem then comment below and please give us a thumbs up

jeff jeffy answered 2 years ago

A country’s Balance of Payment includes two components – Current account, Capital and financial account. Current...

A country’s Balance of Payment includes two components – Current account, Capital and financial account. Current account measures the value of all goods and services imported and exported during a given financial year. Current Account Deficit (CAD) arises when the value of imported goods and services exceeds the value of exported goods and services. As on June 30, 2020 RBI reported India’s current account deficit has been reduced to 0.9% of the GDP in 2019-20 as compared to 2.1% in...

What are the four components of a country’s current account of the balance of payments. Name...

What are the four components of a country’s current account of the balance of payments. Name and briefly describe what each component consists of. (4)

65. As a mathematical truism, a country’s current account deficit must equal: (a) its capital account...

65. As a mathematical truism, a country’s current account deficit must equal: (a) its capital account surplus; (b) its nominal GDP; (c) the level of its imports; (d) its central government’s budget deficit. 66. If a country is labelled “a debtor nation;” (a) it has a high level of consumer debt, such as credit card debt; (b) the value of its assets abroad is less than the value of assets in that country owned by foreigners; (c) it is not...

If a country’s current account has a $200 million surplus and its capital account balance has...

If a country’s current account has a $200 million surplus and its capital account balance has a $30 million deficit, then its financial account balance must have a _____________. a) $170 million deficit correct b) $170 million surplus c) $230 million surplus d) $200 million deficit e) $230 million deficit

Aiming at reducing air pollution, the government decided to reduce the country’s use of gasoline by...

Aiming at reducing air pollution, the government decided to reduce the country’s use of gasoline by imposing an $1 tax on each gallon of gasoline sold. Are consumers of gasoline helped or hurt by the tax? (Hint- draw the diagram to see if consumer surplus increases or decreases) A. Consumer surplus is unchanged B. Consumers are helped C. Consumers are hurt D. Not enough information to conclude Aiming at reducing air pollution, the government decided to reduce the country’s use...

(a)What international transactions make up the current account and basic account of a country’s BOP? (b)What...

(a)What international transactions make up the current account and basic account of a country’s BOP? (b)What measures can a country take to deal with its balance of trade deficit? (c) Briefly discuss how devaluation is supposed to work to reduce a country’s trade deficit? What are the limitations of this strategy?

(4)(a)What international transactions make up the current account and basic account of a country’s BOP? (b)What...

(4)(a)What international transactions make up the current account and basic account of a country’s BOP? (b)What measures can a country take to deal with its balance of trade deficit? (c) Briefly discuss how devaluation is supposed to work to reduce a country’s trade deficit? What are the limitations of this strategy?

tariffs and import quotas usually reduce general economic welfare

An amount of $14,000.00 is deposited into an account today, it is expected to increase to...

An amount of $14,000.00 is deposited into an account today, it is expected to increase to a maturity value of $18,152.83 in 8.5 years from now. What is the nominal interest rate compounded monthly? Round the answer to two decimal places.

116. An increase in a country’s trade barriers will cause the _____ for its currency to...

116. An increase in a country’s trade barriers will cause the _____ for its currency to shift to the _____. a. demand, left b. demand, right c. supply, left d. supply, right e. supply and demand, left 119. The advantage of having a weak currency is it: a. stimulates the demand for exports. b. make imports more expensive. c. makes currency trading more profitable. d. All of the above. e. None of the above. 120. If the foreign interest rate...

Question