If the U.S. government imposes an import quota on beef, U.S. net exports will
a. increase, the real exchange rate of the dollar will appreciate, and domestic sales of U.S. beef will increase.
b. increase, the real exchange rate of the dollar will depreciate, and domestic sales of U.S. beef will not change
c. not change, the real exchange rate of the dollar will appreciate, and domestic sales of U.S. beef will increase.
d. not change, the real exchange rate of the dollar will depreciate, and domestic sales of U.S. beef will not change.
c
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Free markets promote all of society’s goals.
Answer the following statement true (T) or false (F)
When opportunity costs rise as more of a good is consumed, the production possibilities frontier will be concave (bowed out) with respect to the origin
a. True b. False
Which one of the following is not a function of a Central Bank?
(a) Issuer of currency. (b) Banker to the general public. (c) Banker to the government. (d) Lender of last resort.
In 2009 the electronics retailer Circuit City closed its stores. If we assume this was a short-run decision, the most likely explanation for it is that the price of a typical product sold at Circuit City stores was:
A. greater than the average total cost of producing its typical product. B. equal to the average total cost of producing its typical product. C. less than the average total cost of producing its typical product but greater than the average variable cost. D. less than the average variable cost of producing its typical product.