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At the Original Exchange Rate an Import Quota

Question 152

Multiple Choice

At the original exchange rate an import quota


A) creates a surplus in the market for foreign-currency exchange,so the exchange rate rises.
B) creates a surplus in the market for foreign-currency exchange,so the exchange rate falls.
C) creates a shortage in the market for foreign-currency exchange,so the exchange rate rises.
D) creates a shortage in the market for foreign-currency exchange,so the exchange rate falls.

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