Suppose the United States imposed a high tariff on a major imported item. Under a system of
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Suppose the United States imposed a high tariff on a major imported item. Under a system of flexible rates of exchange, this tariff would tend to
a. cause the dollar to appreciate in value.
b. cause the dollar to depreciate in value.
c. increase the U.S. balance-of-trade deficit.
d. increase the U.S. balance-of-payments deficit.
e. do
b, c, and d.
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