The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariff will reduce the country's trade deficit
A) because imports will be reduced and exports cannot possibly change.
B) only if the tariff has no impact on the country's spending or income.
C) only if the tariff leads to increased income in the country relative to the country's Spending.
D) only if the tariff leads to increased spending by the country relative to the country's Income.

Question

Quizplus · Accepted Answer

The Answer of The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariff will reduce the country's trade deficit
A) because imports will be reduced and exports cannot possibly change.
B) only if the tariff has no impact on the country's spending or income.
C) only if the tariff leads to increased income in the country relative to the country's Spending.
D) only if the tariff leads to increased spending by the country relative to the country's Income.

The Macroeconomic View of a Trade Deficit Implies That, Other