Suppose the U

Multiple Choice

Suppose the U.S. imposes an import quota on steel. U.S. exports

A) increase, the real exchange rate of the U.S. dollar appreciates, and U.S. net capital outflow increases.
B) increase, the real exchange rate of the U.S. dollar depreciates, and U.S. net capital outflow is unchanged.
C) decrease, the real exchange rate of the U.S. dollar appreciates, and U.S. net capital outflow is unchanged.
D) decrease, the real exchange rate of the U.S. dollar depreciates, and U.S. net capital outflow decreases.