Tariffs and quotas are used to restrict the flow of international trade and capital.These are examples of:

Question

Quizplus · Accepted Answer

Tariffs and quotas are examples of direct controls, as they directly restrict the flow of international trade and capital. Expenditure-changing policies, on the other hand, affect the level of aggregate demand in an economy, while expenditure-switching policies aim to redirect demand from foreign goods to domestic products. Indirect controls are measures that influence economic behavior through incentives, taxes or subsidies, without directly restricting economic activity.

Tariffs and Quotas Are Used to Restrict the Flow of International