Figure 13-2 -Refer to the FigurE₁3-2.If the Interest Rate Was Initially at Rate

question 167

Multiple Choice

Figure 13-2

-Refer to the FigurE₁3-2.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.

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Definitions:

Productivity Growth

An increase in the efficiency of production, often measured as the output per unit of input over time.

Service Sector Jobs

These are employment opportunities in the service industry, focusing on providing services rather than goods, such as retail, education, and healthcare.

Non-Competing Groups

Segments within the labor market that do not directly compete with each other for jobs due to differing skills, qualifications, or geographical locations.

Earnings Differential

The difference in wages or salaries arising from differences in occupation, education, experience, or other factors.