Suppose the U

question 40

Multiple Choice

Suppose the U.S. imposes an import quota on steel. U.S. exports

• A)increase, the real exchange rate of the U.S. dollar appreciates, and U.S. net capital outflow increases.
• B)increase, the real exchange rate of the U.S. dollar depreciates, and U.S. net capital outflow is unchanged.
• C)decrease, the real exchange rate of the U.S. dollar appreciates, and U.S. net capital outflow is unchanged.
• D)decrease, the real exchange rate of the U.S. dollar depreciates, and U.S. net capital outflow decreases.

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Definitions:

Countervailing Power

The theory that competitive markets can be achieved through balancing the power of large companies by organizing a counterforce, such as labor unions or government regulations.

Homogeneous Oligopoly

A market structure in which a few firms offer identical or very similar products or services, leading to significant interdependence in decision-making.

Pure Monopoly

exists when a single firm is the sole provider of a product or service in a market, without any close substitutes, giving it substantial control over pricing.

Demand Schedule

An illustration that details the quantity of a commodity or service that individuals are eager and have the means to purchase at varying prices.