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The Imposition of an Export Tax by a Home Country

Question 23

Multiple Choice

The imposition of an export tax by a home country will lead to __________ in home Country consumer surplus and will __________ in home country producer surplus.


A) a decrease; also lead to a decrease
B) a decrease; lead to an increase
C) an increase; lead to a decrease
D) an increase; also lead to an increase

Correct Answer:

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