Which of the following changes could create a more negative (or, equivalently, a less positive) output...

 

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Which of the following changes could create a more negative (or, equivalently, a less positive) output gap for the U.S. economy? (i) The United States places additional (higher) tariffs on imports. (ii) Foreign countries place additional (higher) tariffs on U.S. exports. (iii) There is a reduction in availability of money or credit from U.S. banks and lenders (to U.S. borrowers). (iv) U.S. consumer pessimism increases. (i), (ii), (iii) and (iv) (ii), (iii) and (iv) (iii) and (iv) O (i) and (ii) Which of the following changes could create a more negative (or, equivalently, a less positive) output gap for the U.S. economy? (i) The United States places additional (higher) tariffs on imports. (ii) Foreign countries place additional (higher) tariffs on U.S. exports. (iii) There is a reduction in availability of money or credit from U.S. banks and lenders (to U.S. borrowers). (iv) U.S. consumer pessimism increases. (i), (ii), (iii) and (iv) (ii), (iii) and (iv) (iii) and (iv) O (i) and (ii)

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The detailed answer for the above question is provided below Solution The correct answer is ii Forei... View the full answer