If the US Congress Imposes a Quota on Imports of Japanese Cars

question 4

Multiple Choice

If the U.S. Congress imposes a quota on imports of Japanese cars due to claims of "unfair" trade practices,and Japanese demand for American exports increases at the same time,then,in the long run ________,everything else held constant.

• A)the Japanese yen will appreciate relative to the U.S. dollar
• B)the Japanese yen will depreciate relative to the U.S. dollar
• C)the Japanese yen will either appreciate,depreciate or remain constant against the U.S. dollar
• D)there will be no effect on the Japanese yen relative to the U.S. dollar

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