Multiple Choice
If the U.S.raised its tariff on tires,then at the original exchange rate there would be a
A) surplus in the market for foreign-currency exchange,so the real exchange rate would appreciate.
B) surplus in the market for foreign-currency exchange,so the real exchange rate would depreciate.
C) shortage in the market for foreign-currency exchange,so the real exchange rate would appreciate.
D) shortage in the market for foreign-currency exchange,so the real exchange rate would depreciate.
Correct Answer:
Verified
Correct Answer:
Verified
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