Use the following to answer questions:
Figure: A Tariff on Imports 
-(Figure: A Tariff on Imports) Refer to the figure. Suppose the government intervenes with a $2 tariff; the total cost of the tariff to the citizens in that country is:
Definitions:
Loan
A financial arrangement where one party lends an asset, usually money, to another party under the condition of eventual repayment of the principal amount along with interest or charges.
Foreign Exchange Fluctuations
Variations in the value of one currency relative to another, impacting international trade and investments.
Spot Rate
The current market price for immediately exchanging one currency for another.
Forward Contract
A binding financial agreement to buy or sell an asset at a predetermined future date and price.
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