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What Effect Do High Import Tariffs Have on a Country's

Question 3

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What effect do high import tariffs have on a country's export industries?


A) Tariffs reduce the demand for foreign exchange, so the home currency appreciates; this hurts exports.
B) Tariffs reduce the demand for foreign exchange, so the home currency depreciates; this boosts exports.
C) Tariffs reduce the demand for foreign exchange, so the home currency appreciates; this boosts exports.
D) Tariffs do not affect exports, just imports.

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