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Figure 13-2 -Refer to Figure 13-2. If the Economy Were Initially in Were

Question 104

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Figure 13-2 Figure 13-2 -Refer to Figure 13-2. If the economy were initially in equilibrium at r0 and E0 and the government removed import quotas, what would happen to the exchange rate? A) It would appreciate to E1. B) It would appreciate to E2. C) It would depreciate to E1. D) It would depreciate to E2.
-Refer to Figure 13-2. If the economy were initially in equilibrium at r0 and E0 and the government removed import quotas, what would happen to the exchange rate?


A) It would appreciate to E1.
B) It would appreciate to E2.
C) It would depreciate to E1.
D) It would depreciate to E2.

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