If Mexico subsidizes its textiles, making it impossible for U.S. producers to compete, O None of the above is a true statement. not reduce their subsidy O the appropriate response is to threaten to retaliate with an equal subsidy and enact it if the Mexicans O the appropriate response is for the U.S. to enact an equal subsidy so that there is a level playing field of competition in textiles O a tariff on textiles would improve economic well-being in the U.S. O U.S. economic well-being would be maximized by purchasing subsidized textiles from Mexico.