The mercantilism policy failed to generate gains from trade for countries which adopted it because of:
A)increases in consumer spending.
B)high levels of federal debt.
C)supply-side shocks from the oil-exporting countries.
D)runaway inflation in the U.S.
E)retaliations from other countries.

Question

Quizplus · Accepted Answer

Mercantilism, which emphasized exports over imports and the accumulation of gold and silver, often led to trade retaliation from other countries, ultimately hindering gains from trade. Other options such as increases in consumer spending or supply-side shocks would not necessarily directly impact the success of the mercantilism policy. Federal debt and inflation may have had indirect effects, but they were not the primary reasons for the failure of the mercantilism policy.

The Mercantilism Policy Failed to Generate Gains from Trade for Countries