Do you think tariffs increase domestic economic growth?
03-02-2014, 08:01 PM
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In the textbook, tariffs will reduce the real purchasing power of consumers. However, it does encourage domestic growth in the protected industry.
In the real world though, keynesian models aren't always very accurate so there will forever be unpredictable consumer behaviours - they would probably show up as inefficiencies along the line.
In the real world though, keynesian models aren't always very accurate so there will forever be unpredictable consumer behaviours - they would probably show up as inefficiencies along the line.