A US Tariff on Textiles Would ________ U

question 199

Multiple Choice

A U.S. tariff on textiles would ________ U.S. prices on clothing and ________ the number of jobs in the U.S. textile industry.

• A) reduce; decrease
• B) reduce; increase
• C) raise; decrease
• D) raise; increase

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Definitions:

Purchase Price

The amount of money paid to buy goods, services, or assets.

Forward Rate

The agreed-upon price for a financial transaction that will occur at a future date, commonly used in foreign exchange and fixed income markets.

Pure Yield Curve

The relationship between yield to maturity and time to maturity for zero-coupon bonds.

Zero-coupon Treasuries

U.S. Treasury securities that are sold at a discount from their face value and do not pay interest before maturity; investors receive the face value at maturity.