Suppose That the Small Open Economy (SOE)cannot Produce Investment Goods

Multiple Choice

Suppose that the small open economy (SOE) cannot produce investment goods, but domestic producers can produce consumption goods. If a tariff t is imposed by the SOE on imports of goods
From the rest of the world, and the rest of the world imposes a tariff t on exports from the SOE to
The rest of the world, then

A) exports decrease.
B) net exports increase.
C) imports increase.
D) imports decline.
E) exports increase.