protection help (1 Viewer)

[lollipoplisa7]

hey could someone just explain this to me please

why would an outcome of reduced protection be a decrease in inflationary pressure?

thenk u....

 

[sk8ie_boi]

okay so if protection is reduced, that means there will be more imports... as the Current Account Deficit will increase, and would dat increase interest rate to improve CAD, as a result of increasing interest rate... it will decrease inflationary pressures.. lol i dunno.. i was just typing out what i'm thinking atmz..

wait, but if there's more imports then outputs... yeah .. dat's rite ... if deres more imports.. the government will try and slow down the economy so it will purchase less foreign goods and as a result, inflation will drop ... yepz .. =P

 

[Cityboy]

A decrease in protection would mean a decrease in the price of imported goods, meaning a decrease in the cost of the regimen, which in turn causes lessened infaltionary pressures.

 

[sk8ie_boi]

A decrease in protection would mean a decrease in the price of imported goods, meaning a decrease in the cost of the regimen, which in turn causes lessened infaltionary pressures.

Yeah haha I was reading about dis like 2 hours ago.. how without protection, the price of imported goods will decrease.. lol .. oh I'm gonna fail tomorrow..

 

[nick1048]

goodluck all of you with your trials

 

[know_it_all]

protection gone...reduces overall level of prices (no more tariffs etc to artificially raise them)...= lower inflation