Suppose the Federal Government Is Successful in Enacting Tariffs Large

Multiple Choice

Suppose the federal government is successful in enacting tariffs large enough to eliminate the current account deficit.What would happen to the level of domestic investment?

A) It would not change.
B) It would rise and exceed national saving.
C) It would rise to a level equal to net foreign investment.
D) It would fall to a level equal to national saving.
E) It would rise to a level equal to exports.