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Which of the Following Is True of an Export Subsidy

Question 90

Multiple Choice

Which of the following is true of an export subsidy?


A) It increases the net welfare in an economy and accelerates economic progress.
B) It slows economic progress and reduces the net welfare in an economy.
C) It gives rise to unsustainable government deficits.
D) It promotes free international trade.
E) It specifies that a certain portion of a final good must be produced domestically.

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