If the United States Threatens to Impose a Tariff on German

question 228

Multiple Choice

If the United States threatens to impose a tariff on German cars if Germany does not remove agricultural subsidies,the United States will be

• A) better off no matter how Germany responds.
• B) better off if Germany gives in,and will be no worse off if it doesn't.
• C) worse off if Germany doesn't give in to the threat.
• D) worse off no matter how Germany responds.

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Definitions:

Owner's Drawings

Withdrawals made by the owner of a business from the company's funds for personal use.

Owner's Equity Accounts

Accounts reflecting the owner's investment in the business plus any profits retained in the business, minus any withdrawals made.

Investment in Stock

The purchase of shares in a company to gain partial ownership and potentially earn dividends or capital gains.

Capital Stock

The amount of money or assets that owners have contributed to a corporation in exchange for shares of ownership.