In 2002,the U

Multiple Choice

In 2002,the U.S.imposed higher tariffs on steel imports to save American jobs.However,the
30 percent increase in tariffs on steel imports imposed a net job loss on the U.S.in part because:

A) the substitution effect of the tax led consumers to buy more of other domestic goods.
B) the tariff led to the depreciation of the dollar and an increase in exports.
C) consumers spent less on other goods as a result of higher steel prices.
D) the tariff was not high enough to sustain employment in the American steel industry.