Which of the following trade policies will tend to decrease the supply of the country's currency in the foreign exchange market?

Name: Which of the following trade policies will tend to decrease the supply of the country's currency in the foreign exchange market?
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Question

Quizplus · Accepted Answer

Tariffs increase the cost of imports, making them less attractive to foreign buyers. This reduces the demand for the country's currency in the foreign exchange market, leading to a decrease in the supply of the currency.

Which of the Following Trade Policies Will Tend to Decrease