If a country's government imposes a tariff on imported goods, that country's current account balance will likely ____ (assuming no retaliation by other governments).

Name: If a country's government imposes a tariff on imported goods, that country's current account balance will likely ____ (assuming no retaliation by other governments).
Brand: Quizplus
Rating: 4.9 (61 reviews)

Question

Quizplus · Accepted Answer

A tariff on imported goods makes them more expensive, reducing imports and potentially increasing the current account balance by improving the trade balance.

If a Country's Government Imposes a Tariff on Imported Goods