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What Is the Effect of an Export Tariff in a Large

Question 86

Multiple Choice

What is the effect of an export tariff in a large country on
The importing country?


A) The importing country loses, since it pays a higher price for the product.
B) The importing country gains, since it pays a lower price for the product.
C) The importing country neither gains nor loses, since the world price does not change.
D) The importing country will gain from the terms of trade effect.

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