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Figure 13-2 -Refer to the Figure13-2.If the Economy Were Initially in Equilibrium

Question 130

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Figure 13-2 Figure 13-2 -Refer to the Figure13-2.If the economy were initially in equilibrium at r0 and E0 and the government removed import quotas,what would happen to the exchange rate? A) It would appreciate to E1. B) It would appreciate to E2. C) It would depreciate to E1. D) It would depreciate to E2.
-Refer to the Figure13-2.If the economy were initially in equilibrium at r0 and E0 and the government removed import quotas,what would happen to the exchange rate?


A) It would appreciate to E1.
B) It would appreciate to E2.
C) It would depreciate to E1.
D) It would depreciate to E2.

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