Used alone, an expenditure-switching policy that turns spending from foreign goods to domestic goods ...

Used alone, an expenditure-switching policy that turns spending from foreign goods to domestic goods
 
  A) will not reduce the current account deficit.
  B) is likely to cause a recession.
  C) will be likely to increase the current account deficit.
  D) is likely to increase domestic inflation.

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Question 2 - If the price of a good rises, then the effect on the income of the factors that are used intensively in its production will be
 
  A) to raise income by an absolute amount that is less than the rise in prices.
  B) to raise income by an absolute amount that is more than the rise in prices.
  C) to raise income by a smaller percentage than the rise in prices.
  D) to raise income by a greater percentage than the rise in prices.

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Question 3 - One of the most controversial features of the Maastricht Treaty is
 
  A) the lack of ability of individual countries to set their own monetary policies.
  B) increased control of health and safety measures by the European Commission.
  C) the free movement of labor throughout Europe.
  D) the elimination of passport controls in parts of Europe.