If the U.S.government were to impose a 20% tariff on all foreign imports,this would likely lead to ____ in demand for foreign currencies,causing the dollar to _____.

Question

Quizplus · Accepted Answer

A 20% tariff on all foreign imports would make foreign goods more expensive in the U.S., leading to a decrease in demand for these goods. Consequently, there would be less demand for foreign currencies to buy these goods, causing the value of the dollar to appreciate relative to foreign currencies.

If the USGovernment Were to Impose a 20% Tariff on All Foreign