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Figure 13-2 -Refer to the FigurE₁3-2.If the Economy Were Initially in Equilibrium

Question 164

Multiple Choice

Figure 13-2
Figure 13-2 -Refer to the FigurE₁3-2.If the economy were initially in equilibrium at r₀ and E₀ and the government removed import quotas,what would happen to the exchange rate? A) It would appreciate to E₁. B) It would appreciate to E₂. C) It would depreciate to E₁. D) It would depreciate to E₂.
-Refer to the FigurE₁3-2.If the economy were initially in equilibrium at r₀ and E₀ and the government removed import quotas,what would happen to the exchange rate?


A) It would appreciate to E₁.
B) It would appreciate to E₂.
C) It would depreciate to E₁.
D) It would depreciate to E₂.

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