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If a good is exported from (a small) country H to country F, then the imposition of an export subsidy in country H A. raises

If a good is exported from (a small) country H to country F, then the imposition of an export subsidy in country H

  • A.
  • raises the price of the good in both countries (the "Law of One Price").
  • B.
  • lowers the price of the good in both countries.
  • C.
  • lowers the price of the good in H and could raise it in F.
  • D.
  • raises the price of the good in H and lowers it in F.
  • E.
  • raises the price in country H and cannot affect its price in country F.

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