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If the US Congress Imposes a Quota on Imports of Japanese Cars

Question 4

Multiple Choice

If the U.S. Congress imposes a quota on imports of Japanese cars due to claims of "unfair" trade practices,and Japanese demand for American exports increases at the same time,then,in the long run ________,everything else held constant.


A) the Japanese yen will appreciate relative to the U.S. dollar
B) the Japanese yen will depreciate relative to the U.S. dollar
C) the Japanese yen will either appreciate,depreciate or remain constant against the U.S. dollar
D) there will be no effect on the Japanese yen relative to the U.S. dollar

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