Which of the Following Would Be Expected If the Tariff

question 143

Multiple Choice

Which of the following would be expected if the tariff on foreign-produced automobiles was increased?

• A)​The domestic price of automobiles would fall.
• B)​The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise.
• C)​The number of unemployed workers in the domestic automobile industry would rise.
• D)​The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.

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Definitions:

Units Sold

The quantity of an item sold by a company in a specific period.

Hard Rationing

A situation where companies cannot obtain funds for investment, even if they are willing to pay higher interest rates, due to external factors.

Net Present Value

A calculation that determines the current value of a series of future cash flows, discounted back to their present value at a specific discount rate.

Funding Requests

Applications or appeals for financial support, typically made by businesses or organizations to potential investors or grant bodies.