If the USGovernment Removes Tariffs It Had Placed on Imports from Countries

question 64

Multiple Choice

If the U.S.government removes tariffs it had placed on imports from countries that have been accused of deliberately undervaluing their currencies,the price of these imports will ________ and the demand for the undervalued currency will ________.

• A)rise; rise
• B)rise; fall
• C)fall; rise
• D)fall; fall

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Definitions:

Average Tax Rate

The proportion of total income that an individual or business pays in taxes, calculated by dividing the total tax paid by the taxable income.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, usually aimed at ensuring fairness by taxing higher incomes at higher rates.

Average Tax Rate

The fraction of total income that is paid in taxes, calculated by dividing the total tax amount by the total income.

Dollar Tax Liability

The amount of tax owed to the government, calculated in dollars, based on income, sales, imports, or other taxable activities.