The correct statement is that Northern leaders tried to encourage the Americans to buy goods and services made in the US by imposing higher taxes on imports. So, the correct option is A.
The increase in taxation on imported goods resulted in the increase of the cost of goods of imported goods so that people would prefer buying cheaper alternatives.
Imports taxation
- Import refers to the incoming of goods and services from international boundaries of such goods which are scarce in the country such goods are being imported to.
- The economy of the United States of America was facing crisis due to the inflation increasing in the nation along with crisis like unemployment.
- To solve the issues of consumption of domestic products, the government increased the taxation rates of importing goods, which discouraged people from consuming such goods and increase the domestic consumption.
Hence, the correct option is A that the Northern leaders tried to encourage Americans to buy such domestic goods by imposition of higher taxation to increase the cost of imported goods.
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