Protectionism may reduce imports, and it will also
A)appreciate the dollar, reducing exports.
B)appreciate the dollar, increasing exports.
C)depreciate the dollar, increasing exports.
D)depreciate the dollar, reducing exports.

Question

Quizplus · Accepted Answer

Protectionism, such as tariffs and quotas, can make imported goods more expensive and less competitive compared to domestic products, potentially reducing imports. This can lead to a stronger domestic currency (appreciation of the dollar) as demand for the domestic currency increases to purchase domestic goods, which in turn can make exports more expensive for foreign buyers, reducing exports.

Protectionism May Reduce Imports, and It Will Also