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In the Wake of a Worsening Trade Relationship with China

Question 95

Multiple Choice

In the wake of a worsening trade relationship with China, some Australians have called for an increase in tariffs on Chinese products coming into Australia. If higher tariffs are imposed on clothing produced in China, the price of clothing in Australia will


A) increase.
B) decrease.
C) not change.
D) first increase then decrease.
E) first decrease then increase.

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