WGU C211 OA Global Economics Exam Latest (2023 - 2024) (Verified Answers) Which type of market operation does the federal Reserve use to increase the money supply when it buys bonds from the public in the nation's bond market? - ANSWER>>Open Market Operation If the government increases purchases by $10 billion, the aggregate demand for goods and services could rise by more than $10 billion. What effect does this illustrate? - ANSWER>>Crowding out effect Which fiscal polices will result in a rightward shift of the aggregate demand curve? - ANSWER>>Lowering the reserve requirement Which two phrases represent the views of globalization? Choose two answers. - ANSWER>>- A pendulum that swings from one extreme to another. - A competition among key financial centers and markets. What are two trade barriers? - ANSWER>>- Nontariffs - Tarriffs What is the effect of tariff on a particular product for the country imposing the tariff? - ANSWER>>Increases domestic production of the product. Which benefits come to the host country as a result of foreign direct investment? - ANSWER>>- Creation of domestic jobs - Domestic resource allocation Which characteristics of firm resources affects competitive dynamics? - ANSWER>>Imitability (capable or worthy of being imitated or copied) Which characteristic of firm resources affects competitive dynamics, according to the VRIO framework? - ANSWER>>Rarity Which theory is the forerunner to modern-day protectionism? - ANSWER>>Mercantilism