9
QuizMultiple Choice

Fiscal Policy: Taxes — Quiz

Question 9 • Personal Finance and Economics

Which of these is most likely the US government’s aim in taxing imported goods?

Answer
A
to protect domestic businesses
B
to end reliance on foreign goods
C
to make US markets less desirable
D
to decrease international trade

Explanation

Taxes on imported goods are called tariffs. They raise the price of foreign products, making domestic products more competitive and helping protect US businesses from foreign competition. Tariffs may also reduce some imports, but their most likely aim here is not to end all reliance on foreign goods or decrease international trade entirely.

AI-written and checked against the verified answer.

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