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Is there such a thing as an optimal export subsidy? a) Yes. If a country is large enough it is the export counterpart of the

Is there such a thing as an optimal export subsidy?

a) Yes. If a country is large enough it is the export counterpart of the optimal tariff

b) Yes. The export subsidy increases the export price, increasing the terms of trade px/pm

c) No. Export subsidies are too expensive to implement

d) No. An export subsidy will increase exports, perhaps lowering the terms of trade

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