When a large nation imposes an import tariff,the volume of trade will ___________,and the nation's terms of trade will ____________.
A)increase,improve
B)decline,deteriorate
C)decline,improve
D)increase,remain unchanged

Question

Quizplus · Accepted Answer

When a large nation imposes an import tariff, the volume of trade will decline due to higher prices for imported goods, and the nation's terms of trade will improve because it can now buy more foreign goods for each unit of export goods, reflecting a better exchange rate in trade.

When a Large Nation Imposes an Import Tariff,the Volume of Trade