Politicians often argue for tariff increases in order to reduce the nation's dependence on imports. If tariffs are increased, the long-run effect is most likely to be:
A) an increase in American imports, and a decrease in American exports.
B) an decrease in American imports, and an increase in American exports.
C) an increase in both American imports and exports.
D) a decrease in both American imports and exports.

Question

Quizplus · Accepted Answer

Tariffs make imported goods more expensive, leading to a decrease in imports as domestic consumers and businesses seek cheaper alternatives. Additionally, countries affected by the tariffs may retaliate with their own tariffs on American goods, leading to a decrease in American exports.

Politicians Often Argue for Tariff Increases in Order to Reduce