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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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