Use the Figure Below to Answer the Following Questions

Multiple Choice

Use the figure below to answer the following questions.
Figure 32-2
-Refer to Figure 32-2. If the interest rate were initially at r₀ and an import quota was imposed, what would happen to the interest rate?

A) It would stay at r₀.
B) It would decrease because supply would shift right.
C) It would increase because supply would shift left.
D) It would decrease because demand would shift left.