1. (Multiple choice:) A tariff increases the

a. quantity of imports.

b. ability of foreign goods to compete with domestic goods.

c. prices of imports to domestic buyers.

d. all of the above answers are correct.

2. How are currency exchange rate for the U.S. dollar determined? What's the name of the system for determining exchange rates, and how does it work, in a sentence or two? (A listing of the types of exchange systems that are possible is not an answer to this question.)

3. Suppose, as sometimes happens, wealth-holders around the world decide they want to buy more United States dollars in order to buy assets (stocks, bonds, real estate, ...) in the U.S., perhaps because the U.S. looks like a safer place than other alternatives in times of trouble.

A. What does that do to the value of the dollar in international currency markets? Explain why.

B. How does the change you cited in part (A) affect U.S. Exports and Imports, all else constant? Explain.