If the United States Imposes a Tariff on Automobiles,then

question 299

Multiple Choice

If the United States imposes a tariff on automobiles,then

• A) total surplus in the American automobile market decreases.
• B) producer surplus in the American automobile market increases.
• C) U.S.imports of foreign automobiles decrease.
• D) All of the above are correct.

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Definitions:

Semi-annually

Occurring twice a year.

Effective Annual Yield

Annualized interest rate on a security computed using compound interest techniques.

Yield Curve

A graph that shows the relationship between the interest rates and the maturity dates of debt securities issued by the same issuer.

Liquidity Premiums

Additional yield that investors require to hold securities with lower liquidity, compensating them for the higher cost and difficulty of trading such securities.