After the sharp drop in oil prices, the a nation considers enacting a tariff on imported oil.According to proponents, such a tariff would do all of the following except
A) help reduce the federal budget deficit.
B) help strengthen the foreign trade deficit.
C) prop up a sagging domestic oil industry.
D) help cut the foreign trade deficit.
E) create a trade restriction.

Question

Quizplus · Accepted Answer

Enacting a tariff on imported oil would not help strengthen the foreign trade deficit. In fact, it would likely worsen the trade deficit by reducing imports and potentially leading to retaliatory tariffs on U.S. exports. The other options are all potential benefits that proponents may cite for enacting the tariff.

After the Sharp Drop in Oil Prices, the a Nation