Which of the following statements is false?
A) If the United States imposes a tariff on Japanese car imports, the price of cars in the United States is likely to increase.
B) If the United States imposes a quota on Japanese car imports, the price of cars in the United States is likely to increase.
C) If Japan imposes a subsidy on car exports to the United States, the price of cars in the United States is likely to increase.
D) If Japan imposes a "voluntary export restraint" on car exports to the United States, the price of cars in the United States is likely to increase.

Question

Quizplus · Accepted Answer

A subsidy on car exports to the United States would likely decrease the price of those cars in the U.S. market by making them cheaper for American consumers, contrary to the increase suggested in option C.

Which of the Following Statements Is False