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

Question

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Reducing tariffs or quotas on imports makes foreign goods cheaper and more accessible, which can lead to an increase in consumption and investment in the economy. This can stimulate economic activity and potentially increase net domestic investment as businesses may invest more due to increased demand or access to cheaper inputs. Choices A and B are not necessarily true outcomes of reducing tariffs or quotas.

If the Government Reduces Tariffs or Quotas on Imports, Then