Country X imposes a 20% tariff on steel products brought in from country Y. Country Y then responds by imposing a 20% tariff on computers imported from country X. What is one definite economic result of these actions?
- AThe balance of payments of country X and country Y will remain unchanged.
- BThe exchange rate value on which trade between the two countries is based will be maintained.
- CThe profits and employment of domestic firms in both countries will be preserved.
- DThe volume of bilateral trade between country X and country Y will be reduced.