In Equilibrium Which of the Following Happens If the U

question 92

Multiple Choice

In equilibrium which of the following happens if the U.S.imposes tariffs on power tools?

• A)U.S.net exports rise
• B)the exchange rate falls
• C)U.S.production of power tools rises
• D)All of the above are correct.

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Definitions:

Supply and Demand

Fundamental economic model that describes how the price and quantity of goods and services are determined in a market.

Wage Rate

The amount of money paid to an employee by an employer for work performed, usually expressed per hour or per unit of work.

Employment

The state of having a paid job or the total number of people employed within an economy.

Market Pricing

The process of determining the price of a product or service based on supply and demand dynamics in the market.