Multiple Choice
Suppose that the U.S.imposes an import quota on automobiles.The quota makes the real exchange rate of U.S.dollars
A) appreciate but does not change the real interest rate in the United States.
B) appreciate and the real interest rate in the United States increase.
C) depreciate and the real interest rate in the United States decrease.
D) depreciate but does not change the real interest rate in the United States.
Correct Answer:
Verified
Correct Answer:
Verified
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