If Slovenia is a large country in world trade,then if it imposes a large set of tariffs on many of its imports,this would
A)decrease its marginal propensity to consume.
B)have no effect on its terms of trade.
C)harm its terms of trade.
D)increase its exports.
E)improve its terms of trade.

Question

Quizplus · Accepted Answer

When a large country like Slovenia imposes tariffs, it can influence world prices. By reducing the demand for imports, it can cause the prices of imports to fall and the prices of its exports to rise, thus improving its terms of trade.

If Slovenia Is a Large Country in World Trade,then If