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Former congressman and presidential candidate Richard Gephardt once proposed that tariffs be imposed on imports from countries with which the United States has a trade deficit. If this proposal were enacted and if it were to succeed in reducing the U.S. current account deficit to zero, what would be the likely effect on domestic investment spending within the United States? Assume that no other federal government economic policy is changed. (Hint: Use the saving and investment equation to answer this question.)
According to the Neoclassical School of Economics, the market institution should ensure:
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Discuss the different types of unemployment
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What is meant when a monopoly firm is described as a price maker? How is a price maker different from a price taker? Is a monopoly ever a price taker?
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