Suppose the U.S. Congress is successful in enacting tariffs large enough to eliminate the current account deficit. What would happen to the level of domestic investment?
A) It would rise and exceed national saving.
B) It would fall to a level equal to national saving.
C) It would not change.
D) It would rise to a level equal to net foreign investment.
B
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Karole's income rises from $50,000 to $75,000 and her income tax increases from $8,000 to $9,500.Her average tax rate is 6%
a. True b. False Indicate whether the statement is true or false
A lump-sum tariff is:
A. a fixed fee that an importing firm must pay the domestic government in order to have the legal right to sell the product in the domestic market. B. a restriction limiting the quantity of imported goods that can legally enter a domestic market. C. the fee an importing firm must pay to the domestic government on each unit it brings into the domestic market. D. None of the statements are correct.