In equilibrium which of the following happens if the U.S.imposes tariffs on power tools?
A)U.S.net exports rise
B)the exchange rate falls
C)U.S.production of power tools rises
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Tariffs on power tools would likely lead to an increase in domestic production as imported tools become more expensive, making U.S.-made tools more competitive.

In Equilibrium Which of the Following Happens If the U