Introducing tariffs will _____ exports, _____ imports, leaving _____ unaffected.
A)reduce; reduce; trade balance
B)reduce; raise; national income
C)reduce; reduce; national income
D)reduce; raise; trade balance

Question

Quizplus · Accepted Answer

Tariffs on imports will raise the price of imported goods, making them less attractive to consumers, which will lead to a decrease in imports. This will, in turn, create an opportunity for domestic producers who will increase output to meet the domestic demand, creating domestic jobs and increasing domestic income. This will lead to the promotion of domestic industries, and ultimately, raise the trade balance.

Introducing Tariffs Will _____ Exports, _____ Imports, Leaving _____ Unaffected

Introducing Tariffs Will ___ Exports, _ Imports, Leaving ___ Unaffected