If a Country's Government Imposes a Tariff on Imported Goods

question 58

Multiple Choice

If a country's government imposes a tariff on imported goods, that country's current account balance will likely ____ (assuming no retaliation by other governments) .

• A) decrease
• B) increase
• C) remain unaffected
• D) either A or C are possible

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Definitions:

Parasympathetic Stimulation

Activation of the parasympathetic nervous system, leading to responses such as decreased heart rate and increased digestive activity.

Acetylcholine Agonists

Substances that mimic the action of acetylcholine, a neurotransmitter, stimulating the acetylcholine receptor sites.

Sympathetic Stimulation

Activation of the sympathetic nervous system, which increases heart rate, blood pressure, and energy availability; often referred to as the "fight or flight" response.

ANS

The Autonomic Nervous System, a part of the nervous system that controls involuntary actions such as the heartbeat, digestion, and respiratory rate.