If a good is imported into (large) country H from country F, then ...

[urbanoutfitters]

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

Question 2

In the case of an appreciating domestic currency, central banks often sell foreign currencies in exchange for domestic currency to stop the appreciation.
 
  Indicate whether the statement is true or false

[Pamela.irrgang@yahoo.com]

Answer to Question 1

E

Answer to Question 2

FALSE
Explanation: They buy foreign currencies.

[urbanoutfitters]

TYSM

[Perkypinki]

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