Suppose That the United States Imposes an Import Quota on Automobiles.In

question 169

Multiple Choice

Suppose that the United States imposes an import quota on automobiles.In the open-economy macroeconomic model this quota shifts the

• A)U.S.supply of loanable funds left.
• B)U.S.demand for loanable funds left.
• C)demand for U.S.dollars in the market for foreign-currency exchange right.
• D)supply of U.S.dollars in the market for foreign-currency exchange left.

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Definitions:

Principal

In law, the person who authorizes an agent to act on their behalf; in finance, the original amount of money invested or loaned.

Vicarious Liability

The liability or responsibility imposed on a person, a party, or an organization for damages caused by another; most commonly used in relation to employment, with the employer held vicariously liable for damages caused by its employees.

Principal-Employer

The party in a contractual relationship who has the right to control the work of the employee or agent and is responsible for their actions.

Agent-Employee

An individual who performs tasks on behalf of another, the principal, in an employment context, with both agency and employment law aspects governing the relationship.