Acronasia is a country that has had mercantilistic trade policies for decades. In the recent years, however, this policy has caused some major disruptions in the economy of the country. Given the information, which of the following will most likely be a negative effect experienced by the country?

Question

Quizplus · Accepted Answer

Mercantilistic policies often lead to protectionism, which can result in inefficiencies and higher prices domestically, contributing to inflation.

Acronasia Is a Country That Has Had Mercantilistic Trade Policies