Figure 13-2 -Refer to the FigurE₁3-2.If the Economy Were Initially in Equilibrium

question 164

Multiple Choice

Figure 13-2

-Refer to the FigurE₁3-2.If the economy were initially in equilibrium at r₀ and E₀ and the government removed import quotas,what would happen to the exchange rate?

• A)It would appreciate to E₁.
• B)It would appreciate to E₂.
• C)It would depreciate to E₁.
• D)It would depreciate to E₂.

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Definitions:

Glass

A hard, brittle material typically made by melting sand with silicates, used in windows, bottles, and many other objects.

Wehrmacht

The unified armed forces of Nazi Germany from 1935 to 1945, comprising the Heer (army), Kriegsmarine (navy), and the Luftwaffe (air force).

Berlin

The capital and largest city of Germany, known for its history, culture, and role in global politics.

Reichstag

The historic parliament building in Germany, also used to refer to the parliamentary assemblies in the German Empire, Weimar Republic, Nazi Germany, and the Federal Republic.