Which of the following would be the most likely long-run effect if the United States increased its tariff rates and adopted stricter import quotas?
A) a decrease in both U.S. imports and exports
B) an increase in both U.S. imports and exports
C) a decrease in U.S. imports and an increase in U.S. exports
D) an increase in U.S. imports and a decrease in U.S. exports

Question

Quizplus · Accepted Answer

Increasing tariffs and stricter import quotas would likely lead to a decrease in imports due to higher costs and restrictions. In retaliation, other countries might impose their own tariffs, leading to a decrease in U.S. exports.

Which of the Following Would Be the Most Likely Long-Run