If Tariffs Are Used in an Attempt to Improve Country

Multiple Choice

If tariffs are used in an attempt to improve country A's balance of trade, and if exchange rates are flexible, the imposition of the tariffs will cause __________ in the value of A's currency relative to other currencies and, as a consequence, A's exports will __________.

A) a decrease; decrease
B) a decrease; increase
C) an increase; decrease
D) an increase; increase