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    Exam 12: A Macroeconomic Theory of the Open Economy
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    In Response to an Import Quota
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In Response to an Import Quota

Question 3

Question 3

Multiple Choice

In response to an import quota


A) exports increase by more than imports.
B) imports increase by more than exports.
C) imports and exports are unaffected, but the government collects revenues.
D) imports and exports are both reduced, but net exports are unchanged.

Correct Answer:

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