If Canada Imposes a Quota on Imports of Japanese Cars

Multiple Choice

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

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