Figure 13-2 -Refer to Figure 13-2. If the Interest Rate Was Initially

question 171

Multiple Choice

Figure 13-2
-Refer to Figure 13-2. If the interest rate was initially at r0 and an import quota was imposed, what would happen to the real interest rate?

• A) It would not change because the world interest rate is not affected.
• B) It would decrease because supply would shift right.
• C) It would not change because both supply and demand would shift right.
• D) It would decrease because demand would shift left.

---

Definitions:

Knew About

Had awareness or knowledge of a fact, situation, or detail, often relevant in legal and decision-making contexts.

Agency Law

The area of law dealing with the actions of agents, who are authorized to act on behalf of others (principals) in legal or business transactions.

Partnerships

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.

Relationships Among Partners

The legal and interpersonal dynamics that govern the interactions, responsibilities, and obligations between partners in a business partnership.