CIMA Fundamentals of Business Economics BA1 Question # 35 Topic 4 Discussion
BA1 Exam Topic 4 Question 35 Discussion:
Question #: 35
Topic #: 4
Country Y and country Z both impose tariffs on goods imported from each other. Which of the following would likely to be a long-term effect of the imposition of such tariffs?
A.
None. Tariffs affect exports and imports rather than real income
B.
Real income would be lower in Z but higher in Y
C.
Real income would be lower in Y but higher in Z
D.
Real income would grow at a slower rate in both countries compared to a situation in which there are no tariffs
Chosen Answer:
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