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Suppose That the U

Question 135

Multiple Choice

Suppose that the U.S. government imposes a 20% tariff to protect U.S. clothing manufacturers adversely affected by the expiration of the Multifibre Arrangement. Compared with a free-trade situation, the price of clothing in the United States will ______, and U.S. clothing production will ________.


A) fall; fall
B) fall; rise
C) rise; rise
D) rise; fall

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