Suppose That Canada Places Higher Tariffs on Imports of Ice

question 149

Multiple Choice

Suppose that Canada places higher tariffs on imports of ice cream. What would be the most likely result?

• A) The tariffs would reduce imports into Canada, which would cause Canadian net exports to rise.
• B) The tariffs would reduce imports into Canada, which would cause the net supply of dollars in the foreign exchange market to rise.
• C) The tariffs would reduce imports of ice cream into Canada, but would reduce Canadian exports of other goods by an equal amount.
• D) The tariffs would reduce imports of ice cream into Canada, but would increase Canadian exports of other goods by an equal amount.

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Definitions:

Glucose

A simple sugar that is an important energy source in living organisms and a component of many carbohydrates.

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A form of non-verbal communication that involves two individuals looking into each other's eyes for an extended period, which can intensify emotional connections.