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Question: The United States currently imports oil from Saudi Arabia (trade takes place according to the laws of comparative advantage). Congress is considering a tariff on imported oil. Can this tariff:

a. reduce oil imports?

b. end oil imports?

c. reverse trade (United States would sell oil to Saudi Arabia)? Explain your reasoning in each case.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92291468

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