The ideas of the Mercantilists are alive today. Which of these would a modern day Mercantilist agree with? a. Trade with other nations should be as open and free as possible. b. The Government should introduce policies that lead to a positive trade balance. c. The accumulation of foreign exchange reserves is irrelevant. d. The Government should own the means of producing goods and services.
The ideas of the Mercantilists are alive today. Which of these would a modern day Mercantilist agree with?
a. Trade with other nations should be as open and free as possible.
b. The Government should introduce policies that lead to a positive trade balance.
c. The accumulation of foreign exchange reserves is irrelevant.
d. The Government should own the means of producing goods and services.
In the Great Depression, deflation caused
a. the real value of loans increased so firms had to cut back on staff.
b. household incomes reduced as prices fell meaning less spending on goods and services.
c. the Government reduced support to businesses meaning many closed down.
d. with sticky nominal wages, labour becomes more expensive in real terms
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