In 2002,the United States Placed Higher Tariffs on Imports of Steel.According

question 89

Multiple Choice

In 2002,the United States placed higher tariffs on imports of steel.According to the open-economy macroeconomic model this policy should have

• A)reduced imports into the United States and made U.S.net exports rise.
• B)reduced imports into the United States and made the net supply of dollars in the foreign exchange market shift right.
• C)reduced imports of steel into the United States,but reduced U.S.exports of other goods by an equal amount.
• D)reduced imports of steel into the United States and increased U.S.exports of other goods by an equal amount.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity controls the market price.

Marginal Cost

Marginal cost is the change in total cost that arises when the quantity produced changes by one unit. It's pivotal in decision-making processes regarding increasing or decreasing production.

Marginal Revenue

The extra financial gain from selling an additional unit of a product or service.

Profit

The profit earned when the revenue generated from a business operation surpasses all its associated expenses, costs, and taxes required for the operation.