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| A 10% tariff that is paid by the importer, will cause that importer to raise his prices 10% to replace the money he spent on the tariffs.
It matters nota what the government does with the tariffs money. As to what the importer does
Now if like the last time the government decides to hide their failed policy by giving the money to people who got caught up in this failed policy then yes that will add to inflation. | |
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Interest Rates
