Which of the Following Is True of an Export Subsidy

question 39

Multiple Choice

Which of the following is true of an export subsidy?

• A) It increases the price of a good in the domestic market.
• B) It limits free trade.
• C) It gives rise to unsustainable government deficits.
• D) It promotes free international trade.
• E) It specifies that a certain portion of a final good must be produced domestically.

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