Politicians Often Argue for Tariff Increases in Order to Reduce

Multiple Choice

Politicians often argue for tariff increases in order to reduce the size of a balance of trade deficit. If tariffs are increased, the long-run effect is most likely to be:

A) ​a decrease in both U.S.imports and exports.
B) ​an increase in both U.S.imports and exports.
C) ​an decrease in U.S.imports, and an increase in U.S.exports.
D) ​an increase in U.S.imports, and a decrease in U.S.exports.