In the Wake of Worsening Relations with China,some Americans Called

question 44

Multiple Choice

In the wake of worsening relations with China,some Americans called for an increase in tariffs on Chinese products coming into America.If higher tariffs are imposed on clothing produced in China,the price of clothing in America would

• A) decrease.
• B) increase.
• C) not change.
• D) first increase then decrease.
• E) first decrease then increase.

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Definitions:

Monthly Compounded

An interest calculation method where interest is added to the principal sum at the end of each month, accelerating the growth of the investment through more frequent compounding.

Nominal Rate

The stated interest rate on a financial product, not accounting for inflation or the compounding of interest.

Effective Rate

The actual interest rate on an investment or loan, accounting for the effect of compounding over a given period.

Deposits

Funds placed into banking institutions for safekeeping. These can be made into various types of accounts including savings, checking, and money market accounts.