If Higher Tariffs, Such as Those Enacted by the Smoot-Hawley

question 93

Multiple Choice

If higher tariffs, such as those enacted by the Smoot-Hawley trade bill, reduce the imports of the United States, which of the following will be most likely to occur?

• A) U.S. employment will increase.
• B) The unemployment rate of the United States will decline.
• C) U.S. exports will increase because foreigners will want to buy more from U.S. producers.
• D) U.S. exports will decline because foreigners will be earning fewer of the dollars needed to purchase goods and services from Americans.

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Definitions:

Cash Account

An account recording all transactions involving cash, including receipts and payments.

Credit

A bookkeeping entry that represents a decrease in assets or an increase in liabilities, or it can refer to the provision of goods or services in exchange for future payment.

T Account

A graphical representation of a ledger account, used in accounting to depict debits and credits.

Debits

Entries made on the left-hand side of an accounting ledger, typically indicating increases in assets or expenses or decreases in liabilities, equity, and income.