Suppose That Canada Imposes Restrictions on the Importation of Steel

question 29

Multiple Choice

Suppose that Canada imposes restrictions on the importation of steel into Canada.According to the open-economy macroeconomic model,what would be the most likely result?

• A) This policy would lower the real exchange rate and increase net exports.
• B) This policy would lower the real exchange rate and have no effect on net exports.
• C) This policy would raise the real exchange rate and decrease net exports.
• D) This policy would raise the real exchange rate and have no effect on net exports.

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Definitions:

Immune System

The body's defense mechanism against infections, diseases, and other foreign bodies.

Antigens

Substances that the body recognizes as foreign and that elicit an immune response.

Resistance Phase

The second stage of the general adaptation syndrome, where the body adapts to and resists stress, mobilizing resources to cope with a stressor.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when exposed to prolonged stress.