Which of the following statements concerning tariffs is NOT true?

Question

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A tariff is a tax imposed on imported goods. It increases the cost of foreign goods, making them less attractive to consumers and allowing domestic producers to charge higher prices. Therefore, B is not true because a tariff increases the price of imports. A is true because the government collects revenue from the tariff. C is true because as the cost of imports increases, international trade decreases. D is true because the increased cost of the imported good will result in a loss for domestic consumers who have to pay more for it.

Which of the Following Statements Concerning Tariffs Is NOT