If the U.S.were to Impose Import Quotas

question 59

Multiple Choice

If the U.S.were to impose import quotas

• A)the demand for loanable funds and the demand for dollars in the market for foreign-currency exchange would both increase.
• B)nether the demand for loanable funds nor the demand for dollars in the market for foreign-currency exchange would increase.
• C)the demand for loanable funds would increase,but the demand for dollars in the market for foreign-currency exchange would not.
• D)the demand for dollars in the market for foreign-currency exchange would increase,but the demand for loanable funds would not.

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Definitions:

Aggregate Demand

Whole demand for merchandise and services in an economy, at a particular overall price point within a defined temporal scope.

Money Supply

The sum of all financial assets in an economy at a particular time, encompassing cash, deposits in banks, and other easily convertible assets.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all final goods and services produced within a country's borders in a given year, reflecting the real quantity of production.

Expansionary Monetary Policy

A policy by the central bank to increase money supply and encourage economic growth, typically through lowering interest rates.