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If a Good Is Imported into (Large) Country H from Country

Question 16

Multiple Choice

If a good is imported into (large) country H from country F, then the imposition of a tariff in country H in the presence of the Metzler Paradox,


A) raises the price of the good in both countries (the "Law of One Price") .
B) raises the price in country H and cannot affect its price in country F.
C) lowers the price of the good in both countries.
D) lowers the price of the good in H and could raise it in F.
E) raises the price of the good in H and lowers it in F.

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