When the United States Imposed a 25% Tariff on Imported

question 97

Multiple Choice

When the United States imposed a 25% tariff on imported pickup trucks, the price of Japanese pickup trucks in the United States:

• A) rose by 25%.
• B) rose by less than 25%.
• C) rose by more than 25%.
• D) fell by less than 25%.

---

Definitions:

Annual Cash Inflows

The total amount of money received by a business, project, or investment on an annual basis from its operational activities.

Discount Rate

The interest rate used to discount future cash flows to present value, often used in capital budgeting.

Annual Net Cash Inflow

The total amount of money that flows into a company annually after all cash outflows are subtracted.

Payback Period

The duration required for an investment to produce a sum of income or cash that matches the investment's initial cost.