If Higher Tariffs, Such as Those Enacted by the Smoot-Hawley

Multiple Choice

If higher tariffs, such as those enacted by the Smoot-Hawley trade bill, reduce the imports of the United States, which of the following will be most likely to occur?

A) U.S. employment will increase.
B) The unemployment rate of the United States will decline.
C) U.S. exports will increase because foreigners will want to buy more from U.S. producers.
D) U.S. exports will decline because foreigners will be earning fewer of the dollars needed to purchase goods and services from Americans.