The Macroeconomic View of a Trade Deficit Implies That, Other

question 26

Multiple Choice

The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariff will reduce the country's trade deficit

• A) because imports will be reduced and exports cannot possibly change.
• B) only if the tariff has no impact on the country's spending or income.
• C) only if the tariff leads to increased income in the country relative to the country's Spending.
• D) only if the tariff leads to increased spending by the country relative to the country's Income.

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Definitions:

Independent Variable

A variable in an experiment that is manipulated to observe its effect on the dependent variable.

Chocolate

A sweet, typically brown food preparation of roasted and ground cacao seeds, often sweetened and consumed as candy or dessert.

Independent Variable

The variable that is manipulated by the researcher to observe its effect on the dependent variable.

Hot Milk

A warm beverage made by heating milk, often consumed for its comforting effects or as a sleep aid.