Question

If the U.S. government imposed a tariff on all foreign goods, the immediate result would be which of the following? a. Americans would enjoy a higher standard of living.b. More American jobs would be saved.c. More American jobs would be lost.d. The dollar would depreciate against foreign currencies.e. Domestic prices would increase.

Answer 1

Answer:

e. Domestic prices would increase.

Explanation:

A tariff is a tax that is levied on goods produced in foreign countries when they are imported to another country. The government imposes this tax for the purpose of increasing consumption of locally manufactured goods by increasing the price of foreign-manufactured ones. If this happens, the immediate effect would be an increase in consumers good in the local market as they would pay more for goods than they would have without the tariff.