If a country's government imposes a tariff on imported goods, that country's current account balance will likely ____ (assuming no retaliation by other governments).

Question

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A tariff on imported goods makes them more expensive, which can reduce the quantity of imports. This reduction in imports can lead to an improvement in the current account balance, as the country spends less on foreign goods.

If a Country's Government Imposes a Tariff on Imported Goods