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.
Correct Answer:

Verified
Correct Answer:
Verified
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