If the government reduces tariffs or quotas on imports, then:

Name: If the government reduces tariffs or quotas on imports, then:
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

Reducing tariffs or quotas on imports can lead to an increase in real GDP by making inputs cheaper and stimulating competition, which can improve efficiency. It may also lead to a fall in the real current account balance as imports increase relative to exports. Additionally, by reducing the cost of imported capital goods, it can encourage net domestic investment.

If the Government Reduces Tariffs or Quotas on Imports, Then