If All Countries Try to Expand Their Exports and Restrict

question 49

Multiple Choice

If all countries try to expand their exports and restrict their imports through the use of export subsidies and import tariffs, the net effect will probably be

• A)an increase in the volume of trade but little change in unemployment levels.
• B)a fall in the volume of trade and an increase in the standard of living in each country.
• C)no change in the volume of trade but less unemployment.
• D)a fall in the volume of trade and a decline in the average living standards in each country.
• E)no change in the volume of trade but an increase in the overall unemployment rates.