The Redistribution Effect of an Import Tariff Is the Transfer

question 153

Multiple Choice

The redistribution effect of an import tariff is the transfer of income from the domestic:

• A) Producers to domestic buyers of the good
• B) Buyers to domestic producers of the good
• C) Buyers to the domestic government
• D) Government to the domestic buyers

---

Definitions:

Coca-Cola

A multinational beverage corporation known for its flagship product, Coca-Cola, a carbonated soft drink.

Chrysler

An American automotive brand and part of Stellantis, a global automaker resulting from the merger of Fiat Chrysler Automobiles and the PSA Group.

Real Interest Rate

The rate of interest an investor expects to receive after allowing for inflation, providing a more accurate measure of investment value.

Nominal Risk-Free Rate

The rate of return on an investment without inflation taken into account, representing only the absolute interest amount.