According to the Stolper-Samuelson Theorem,the Imposition of a Tariff by a Nation

question 5

Multiple Choice

According to the Stolper-Samuelson theorem,the imposition of a tariff by a nation:

• A)increases the real return of the nation's abundant factor
• B)increases the real return of the nation's scarce factor
• C)reduces the real return of the nation's scarce factor
• D)any of the above is possible

---

Definitions:

Puttable Mortgage Bond

A type of bond that gives the holder the option to return the bond to the issuer before its maturity date, typically in response to changes in interest rates.

Yield

The income returned on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.

TIPS Bond

Treasury Inflation-Protected Securities are U.S. government bonds designed to safeguard investments against the detrimental impacts of inflation by being tied to inflation rates.

Real Rate of Return

The annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation or deflation.