If the US Government Imposes an Import Quota on French Wine, U

question 284

Multiple Choice

If the U.S. government imposes an import quota on French wine, U.S. net exports will

• A)increase, the real exchange rate of the dollar will appreciate, and domestic sales of U.S. wine will increase.
• B)not change, the real exchange rate of the dollar will appreciate, and domestic sales of U.S. wine will increase.
• C)not change, the dollar will depreciate, and domestic sales of U.S. wine will not change.
• D)None of the above is correct.

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