If the US Government Imposes an Import Quota on French Wine, U

Multiple Choice

If the U.S. government imposes an import quota on French wine, U.S. net exports will

A) increase, the real exchange rate of the dollar will appreciate, and domestic sales of U.S. wine will increase.
B) not change, the real exchange rate of the dollar will appreciate, and domestic sales of U.S. wine will increase.
C) not change, the dollar will depreciate, and domestic sales of U.S. wine will not change.
D) None of the above is correct.