Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ?
Correct answer: B. regressive and thus bear down on the poor
- A. Progressive and thus bear down on the wealthy
- B. regressive and thus bear down on the poor
- C. proportional and thus bear down on all consumers in the same manner
- D. deflationary and thus result in reductions in the price of imports
Explanation
Import tariffs generally impose a relatively heavier burden on lower-income households because poorer households spend a larger share of their income on traded consumer goods. This makes tariffs regressive rather than progressive or deflationary.
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