Question

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This Question: 1 pt 56 of 60 (54 complete) his Test: 60 pts possible The United States claims that Canada subsidizes the production of softwood lumber and that imports of Canadian softwood lumber damage the interests of U.S. producers The United States has imposed a tariff on Canadian imports to counter the subsidy. Canada is thinking of retaliating by refusing to export water to Califomia to The United States. The table shows a payoff matrix for the game that the United States and Canada are playing. Canada's strategies (red squares) Export 200 Dont export 50 U.S. No taniff 200 100 strategies (blue 100 squares) Tariff 250 150 The best strategy for the United States is to and the best strategy for Canada is toThe outcome of this game is that 0 A. O B. O C. A. stop all trade with Canada; stop all trade with the United States B. impose a tariff, export C. impose a tariff only if Canada does not export; export only if the United States imposes a Canada does not export and the United States imposes a tariff Canada exports and the United States imposes a tariff all trade between the two countries stops D. Canada exports and the United States does not impose a tariff tariff impose a tariff only if Canada exports; export only if the United States does not impose a tariff not impose a tariff, not export E. Canada does not export and the United States does not impose a tariff D. E. Click to select your answer

Answer 1