Lowering the Tariff on Good X Will

question 101

Multiple Choice

Lowering the tariff on good X will

• A) increase the domestic imports of good X.
• B) have no effect unless the nationʹs trading partner also lowers its tariff on good X.
• C) increase domestic employment in industry X.
• D) increase the domestic price of good X.

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Definitions:

Future Value

The estimated amount that an investment will grow to over a period of time at a specified rate of interest.

Compounded Annually

Refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated once per year.

Future Value

The estimated value of an investment or loan including interest or dividends, at a specific future date.

Ordinary Annuity

A series of matching financial discharges made at interval ends throughout a fixed term.