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The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariff will reduce South Africa's trade deficit. Choose the
The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariff will reduce South Africa's trade deficit.
Choose the correct answer
A Because exports will be promoted and imports cannot possibly change
B Because imports will be reduced and exports cannot possibly change
C Only if the tariff has no impact on South Africa's spending or income
D Only if the tariff leads to increased income in South Africa relative to its spending
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