Refer to the Information Provided in Table 20 -Refer to Table 20

question 54

Multiple Choice

Refer to the information provided in Table 20.6 below to answer the question(s) that follow.
Table 20.6 $$\begin{array} { l c c } & \text { United States } & \text { France } \\\hline \text { Peas } & \$ 3 & 3 \text { euros } \\\text { Carrots } & \$ 4 & 9 \text { euros } \\\hline\end{array}$$
-Refer to Table 20.6. If the exchange rate is $1 = 2 euros, then

• A) the United States will import both peas and carrots.
• B) France will import both peas and carrots.
• C) the United States will import peas and France will import carrots.
• D) France will import peas.

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Definitions:

Import Quotas

Limits set by a government on the amount of a specific good that can be imported into the country.

Loanable Funds

The market model that describes the supply and demand for money that is available for borrowing and lending.

Foreign-Currency Exchange

The process of exchanging one country's currency for another, affecting trade, investments, and economic indicators.

Capital Flight

The large-scale exodus of financial assets and capital from a country due to economic instability, political unrest, or unfavorable policies.