What is the impact as a percentage of GDP of a 30% tariff in Klokionia if the tariff causes a 45% reduction in import quantities and total imports affected by these tariffs are 50% of GDP?
A. 1.17%
B. 2.45%
C. 3.38%
D. 5.00%
Answer:C
What is the impact as a percentage of GDP of a 30% tariff in Klokionia if the tariff causes a 45% reduction in import quantities and total imports affected by these tariffs are 50% of GDP?
A. 1.17% B. 2.45% C. 3.38% D. 5.00%