If the US Congress Imposes a Quota on Imports of Japanese Cars

question 4

Multiple Choice

If the U.S. Congress imposes a quota on imports of Japanese cars due to claims of "unfair" trade practices,and Japanese demand for American exports increases at the same time,then,in the long run ________,everything else held constant.

• A)the Japanese yen will appreciate relative to the U.S. dollar
• B)the Japanese yen will depreciate relative to the U.S. dollar
• C)the Japanese yen will either appreciate,depreciate or remain constant against the U.S. dollar
• D)there will be no effect on the Japanese yen relative to the U.S. dollar

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Definitions:

Credit Policy

A set of guidelines that a company uses to determine the creditworthiness of potential customers, influencing terms of credit and payment collections.

Collection of Revenues

The process of gathering all income generated from various sources, including sales, services, and investments.

Cost of Debt

The effective rate that a company pays on its current debt, incorporating interest payments and other related costs.

Revenue

Revenue is the total amount of money received by a company for goods sold or services provided during a specific period.