If a country places tariffs on imported goods, then
a. its currency appreciates which reduces exports.
b. its currency appreciates which increases exports.
c. its currency depreciates which reduces exports.
d. its currency depreciates which increases exports.
a
You might also like to view...
For infant industry tariff protection to be valid requires that
A) the tariff must be allowed to last forever. B) only industries that currently are producing efficiently should be protected. C) government officials must predict which industries will eventually be able to compete with more established foreign producers. D) the industries protected must have substantial monopoly power in the absence of foreign competition.
In 2009 Greece's budget deficit rose and people became worried about the ability of the Greek government to make payments on its debt. Which of the these events reduces a country's real exchange rate?
a. an increase in the budget deficit, and increased concerns about the ability of the government to pay back its debt b. an increase in the budget deficit, but not increased concerns about the ability of the government to pay back its debt c. increased concerns about the ability of the government to pay back its debt, but not an increase in the budget deficit d. neither an increase in the budget deficit, nor increased concerns about the ability of the government to pay back its debt