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Why Does the United States Not Use Export Taxes

Question 33

Multiple Choice

Why does the United States not use export taxes?


A) The elasticities of demand for its exports are too high for an export tax to increase export earnings.
B) It feels that its international obligations require it to export as cheaply as possible.
C) The Constitution of the United States explicitly states that "No Tax or Duty shall be laid on Articles exported from any State."
D) All of the above.
E) None of the above.

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