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    Economics Principles and Policy Study Set 2
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    Exam 36: Exchange Rates and the Macroeconomy
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    Protectionism May Fail to Reduce a Current Account Deficit Because
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Protectionism May Fail to Reduce a Current Account Deficit Because

Question 135

Question 135

Multiple Choice

Protectionism may fail to reduce a current account deficit because it


A) depreciates the dollar.
B) invites retaliation, which hurts exports.
C) encourages exports.
D) does not reduce imports.

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