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The Benefits of an Export Subsidy to a Domestic Producer

Question 32

Multiple Choice

The benefits of an export subsidy to a domestic producer are:


A) Higher profits for domestic producers and lower prices for domestic consumers.
B) Higher profits for domestic producers and lower prices for foreign consumers.
C) Higher profits for foreign producers and lower prices for domestic consumers.
D) Lower prices for both domestic and foreign consumers.
E) Higher profits for both domestic and foreign producers.

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