Suppose that the U.S. imposes an import quota on lumber. The quota makes the real exchange rate of the U.S. dollar
a. appreciate but does not change the real interest rate in the United States.
b. appreciate and the real interest rate in the United States increase.
c. depreciate and the real interest rate in the United States decrease.
d. depreciate but does not change the real interest rate in the United States.
a
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If you buy a futures contract for U.S. Treasury bills and on the delivery date the interest rate on T-bills is lower than you expected, you will have
A) lost money on your long position. B) gained money on your long position. C) lost money on your short position. D) gained money on your short position.
Antitrust problems rarely appear in competitive markets
Indicate whether the statement is true or false
Lowincomesville is a poor town. The mayor has decided to impose a law to cut all rental rates on apartments in half and to fix them at this level. Will this help the poor? Why or why not? Be sure to distinguish between the short run and the long run
If there is a shortage of loanable funds, then
a. the demand for loanable funds will shift right so the real interest rate rises. b. the supply of loanable funds will shift left so the real interest rate falls. c. there will be no shifts of the curves, but the real interest rate rises. d. there will be no shifts of the curves, but the real interest rate falls.