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Figure 13-2 -Refer to the FigurE₁3-2.If the Interest Rate Was Initially at Rate

Question 167

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Figure 13-2
Figure 13-2    -Refer to the FigurE₁3-2.If the interest rate was initially at r₀ and an import quota was imposed,what would happen to the real interest rate? A) It would not change because the world interest rate is not affected. B) It would decrease because supply would shift right. C) It would not change because both supply and demand would shift right. D) It would decrease because demand would shift left.
-Refer to the FigurE₁3-2.If the interest rate was initially at r₀ and an import quota was imposed,what would happen to the real interest rate?


A) It would not change because the world interest rate is not affected.
B) It would decrease because supply would shift right.
C) It would not change because both supply and demand would shift right.
D) It would decrease because demand would shift left.

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