What Is the Function of a Countervailing Duty

question 81

Multiple Choice

What is the function of a countervailing duty?

• A) To balance revenues against costs.
• B) To restrict the amount a country will import.
• C) To increase revenues from parallel imports.
• D) To expand the amount a country will import.
• E) To permit the use of foreign currency within the country.

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Definitions:

Tax Cuts

Reductions in the amount of taxes that individuals or corporations must pay to the government, often aimed at stimulating economic growth or achieving policy goals.

Legislation

Laws that have been passed by a governing body or legislature.

Aggregate Demand

The all-inclusive demand for goods and services within an economy, set at a definite price level and over a specific duration.

Goods and Services

The output of an economy, enterprise, or system that includes tangible products (goods) and intangible activities (services) provided to individuals or entities.