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Business, 09.03.2021 03:20 haleymoodie1998

Imagine a two good H-O economy which imports automobiles and exports wheat. Suppose the production of these two goods use only capital and labor. If the government imposes a tariff on the import of automobiles, it will raise the domestic price of autos. At the same time, suppose the price of wheat remains constant. Explain who in the economy will gain and who will lose in real terms as a result of this tariff

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Imagine a two good H-O economy which imports automobiles and exports wheat. Suppose the production o...
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