Answer :
The imposition of a tariff will typically increase government revenue and increase domestic production of the good.
What are the effects of a tariff?
A tariff is when a company charges an amount on the import of certain goods and services. The purpose of a tariff is to discourage the importation of certain goods and services and increase domestic production.
When a tariff is imposed, import falls and since import is a negative function of the gross domestic product, GDP increases. Also, the income of the government increases when tariffs are imposed.
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