2. What effect did protective tariffs have on the American economy?
O They made it difficult for Americans to invest in foreign businesses.
They made American labor cheaper than immigrant labor.
They made American goods cheaper than imported goods.
They made taxes on American and foreign businesses equal.

Protective tariffs are tariffs that are enacted with the aim of protecting a domestic industry.[1] They aim to make imported goods cost more than equivalent goods produced domestically, thereby causing sales of domestically produced goods to rise; supporting local industry. Tariffs are also imposed in order to raise government revenue, or to reduce an undesirable activity (sin tax). Although a tariff can simultaneously protect domestic industry and earn government revenue, the goals of protection and revenue maximization suggest different tariff rates, entailing a tradeoff between the two aims.

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