Asked by
Anthony Munoz
on Dec 12, 2024Verified
If tariffs are decreased, the long-run effect is most likely to be
A) a decrease in both U.S. imports and exports.
B) an increase in both U.S. imports and exports.
C) a decrease in U.S. imports and an increase in U.S. exports.
D) an increase in U.S. imports and a decrease in U.S. exports.
Tariffs Decreased
Refers to a reduction in taxes imposed on imported goods, which can lead to increased trade between countries and potentially lower prices for consumers.
U.S. Imports
Goods and services purchased by residents of the United States that are produced in and brought from other countries.
Long-Run Effect
The ultimate impact of economic policies or market changes, characterized by all inputs and outputs being variable and firms fully adjusting to new conditions.
- Analyze the long-run effects of changes in trade policy on imports and exports.
Verified Answer
KB
Learning Objectives
- Analyze the long-run effects of changes in trade policy on imports and exports.