Suppose That Canada Imposes an Import Quota on Automobiles

question 60

Multiple Choice

Suppose that Canada imposes an import quota on automobiles.Which statement best describes the most likely effects of this quota?

• A) The quota would cause the real exchange rate of Canadian dollars to appreciate,but it would not change the real interest rate in Canada.
• B) The quota would cause the real exchange rate of Canadian dollars to appreciate and the real interest rate in Canada to increase.
• C) The quota would cause the real exchange rate of Canadian dollars to depreciate and the real interest rate in Canada to decrease.
• D) The quota would cause the real exchange rate of Canadian dollars to depreciate,but it would not change the real interest rate in Canada.

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Definitions:

Personality Traits

Stable characteristics that define an individual's behaviors, thoughts, and feelings, distinguishing one person from another.

Conscientiousness

A personality trait characterized by being organized, dependable, efficient, and disciplined, part of the Big Five personality traits.

Modest Relationship

Refers to a correlation between two variables that is present but not strong or influential in nature.

Factor Analysis

A statistical method used for reducing data complexity by identifying underlying factors that explain the patterns of correlations among variables.