Multiple Choice
Suppose that Canada imposes restrictions on the importation of textiles into Canada. According to the open-economy macroeconomic model, what would be the most likely result?
A) This policy would lower the real exchange rate and increase net exports.
B) This policy would lower the real exchange rate and have no effect on net exports.
C) This policy would raise the real exchange rate and decrease net exports.
D) This policy would raise the real exchange rate and have no effect on net exports.
Correct Answer:
Verified
Correct Answer:
Verified
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