Multiple Choice
When a country imposes an import quota,its exchange rate
A) rises because the supply of dollars in the market for foreign-currency exchange falls.
B) falls because the supply of dollars in the market for foreign-currency exchange rises.
C) rises because the demand for dollars in the market for foreign-currency exchange rises.
D) falls because the demand for dollars in the market for foreign-currency exchange falls.
Correct Answer:
Verified
Correct Answer:
Verified
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