A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:

Changes in government purchases affect aggregate demand only indirectly through consumption spending

Indicate whether the statement is true or false

The above figure shows the U.S. market for replacement cell phone batteries. Suppose the U.S. government imposes the tariff illustrated in the figure. The tariff is equal to ________ and the price U.S

consumers pay ________ compared to the price paid when there was free trade. A) $2; decreases B) $14; decreases C) $2; increases D) $12; increases E) $14; increases