17 What tools can be used to prevent free trade Explain what effect these tools

17 what tools can be used to prevent free trade

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17) What tools can be used to prevent free trade? Explain what effect these tools have on the economy. 18) What is meant by the gold standard? Why do some people favor our return to the gold standard? 19) What three institutions were set up by the Bretton Woods conference? Explain the goals of each of the institutions. 20) What is meant by the pegged exchange rate? Explain how it differs from the fixed exchange rate. Why was it abandoned by President Nixon? 21) Explain what is meant by the floating exchange rate. How is the value of the dollar determined under this system? What is the impact on the economy of a very strong dollar? Why has the US government in the past tried to reduce the value of the dollar? 22) What should be done about the US trade deficit? 23) Define: a) Absolute advantage b) Comparative advantage c) Recession d) Long run e) Short run f) Fractional Reserve Banking g) Excess Reserves h) Required Reserves i) Stagflation j) Velocity k) Liquidity l) Assets m) Liabilities n) Fiscal Policy o) Monetary Policy p) Balance of Trade q) Terms of Trade r) Cost-Push Inflation s) Demand-Pull Inflation
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