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An Export Subsidy Can Be Good for a Country If

Question 22

Multiple Choice

An export subsidy can be good for a country if:


A) the subsidy allows the country's only exporting firm to capture the entire world market.
B) the subsidy decreases the export price so that the export quantity increases.
C) the subsidy is offset by a countervailing duty.
D) the international market for the export product is highly competitive.

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