Which combination of policies would provide the greatest stimulus to domestic employment and output in the short run?
A)raising trade barriers on imports and subsidizing exports
B)raising trade barriers on imports and imposing special taxes on exports
C)lowering trade barriers on imports and imposing special taxes on exports
D)lowering trade barriers on imports and subsidizing exports
E)subsidizing imports and imposing special taxes on exports

Question

Quizplus · Accepted Answer

Raising trade barriers on imports protects domestic industries from foreign competition, potentially increasing domestic production and employment. Subsidizing exports makes domestic goods cheaper for foreign buyers, increasing demand for these goods, further stimulating domestic production and employment.

Which Combination of Policies Would Provide the Greatest Stimulus to Domestic