Author Question: The tariff levied in a large country (Home), lowers the world price of the imported good. This ... (Read 94 times)

a0266361136 · **on:** Jun 30, 2018

The tariff levied in a large country (Home), lowers the world price of the imported good. This causes

A) foreign consumers to demand less of the good on which was levied a tariff.
B) domestic demand for imports to decrease.
C) domestic demand for imports to increase.
D) foreign suppliers to produce less of the good on which was levied a tariff.
E) no change in the foreign price of the good it imports.

Question 2

In general, the lower the exercise price relative to the current spot rate price of the currency, the more valuable

A) the put option.
B) the call option.
C) the arbitrage operation.
D) the triangular arbitrage.