In a Large Open Economy, If an Import Quota Is

question 82

Multiple Choice

In a large open economy, if an import quota is adopted, then:

• A) net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate rises.
• B) net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate falls.
• C) net exports rise and the real exchange rate rises.
• D) net exports rise and the real exchange rate falls.

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Definitions:

Parent-Child Relationship

The connection between a parent and their child characterized by elements of care, guardianship, guidance, and love.

Brokering

The act of arranging or negotiating agreements between two or more parties, often in reference to financial transactions or information exchange.

Social Work Role

The functions, responsibilities, and activities that social workers engage in to provide services, support, and advocacy.

Intellectualization

A defense mechanism where reasoning is used to block confrontation with an unconscious conflict and its associated emotional stress.