If the U.S.government places tariffs on imports from countries that have been accused of deliberately undervaluing their currencies,the price of these imports will ________ and the demand for the undervalued currency will ________.

Question

Quizplus · Accepted Answer

When tariffs are placed on imports, the cost of these goods increases for consumers in the importing country, leading to a rise in prices. However, the demand for the exporting country's currency is likely to fall because the higher prices can reduce the volume of goods imported, thus decreasing the need to exchange for the exporting country's currency.

If the USGovernment Places Tariffs on Imports from Countries That Have Been