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Suppose Canada Imposed a High Tariff on a Major Imported

Question 65

Multiple Choice

Suppose Canada imposed a high tariff on a major imported item.What effect would this have?


A) It would tend to cause the dollar to appreciate in value.
B) It would tend to decrease the Canadian merchandise trade surplus.
C) It would tend to increase Canadian exports of goods.
D) It would tend to cause the dollar to depreciate in value.

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