Recall Application 1, "The Impact of Tariffs on the Poor

question 110

Multiple Choice

Recall Application 1, "The Impact of Tariffs on the Poor," to answer the following questions:
-After reading the application, we can conclude that U.S. tariffs hurt poor consumer's the disproportionately because:

• A) U.S. tariffs fall heaviest on labor intensive goods.
• B) U.S. tariffs are on goods like apparel items that poor consumers spend a larger fraction of income on.
• C) U.S. tariffs fall heaviest on the lowest price goods in a category.
• D) all of the above

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Definitions:

Present Value

Present Value is a financial concept that calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Contract Interest Rate

The interest rate specified in a loan or bond agreement, representing the cost of borrowing or the rate of return promised to lenders.

Troubled Debt Restructuring

A process where the terms of a debt are modified due to the debtor's financial difficulties to provide relief.

Stated Interest Rate

The interest rate that is agreed upon in the loan document, which does not account for compounding.