During a recession,governments tend to increase ____ to help protect domestic producers by directly adding to the cost of foreign goods.
A) import quotas
B) export restraints
C) buy domestic laws
D) export tariffs
E) import tariffs

Question

Quizplus · Accepted Answer

During a recession, governments tend to increase import tariffs as a protectionist measure to help domestic producers. By imposing import tariffs, governments can directly add to the cost of foreign goods, making them more expensive compared to domestic products. This provides a competitive advantage to domestic producers, as consumers are more likely to choose domestic goods due to their lower cost. Import tariffs can also generate revenue for the government, which can be used to stimulate the domestic economy.

During a Recession,governments Tend to Increase ____ to Help Protect