If a country's government imposes a tariff on imported goods, that country's current account balance will likely ____ (assuming no retaliation by other governments).

Question

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Imposing a tariff on imported goods makes them more expensive, which typically reduces the volume of imports. This can lead to an improvement in the country's current account balance, as the value of imports decreases relative to exports.

If a Country's Government Imposes a Tariff on Imported Goods