Question
Suppose a large economy imposes a specific tariff of $1,000 on imported autos. If the terms-of-trade effect exceeds the deadweight losses resulting from the tariff,
Suppose a large economy imposes a specific tariff of $1,000 on imported autos. If the terms-of-trade effect exceeds the deadweight losses resulting from the tariff, its national welfare _____
A. increases
B. Decreases
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Macroeconomics
Authors: Charles I. Jones
3rd edition
978-0393123944, 393123944, 393923908, 978-0393923902
