Which of the Following Is the Correct Way to Show

question 212

Multiple Choice

Which of the following is the correct way to show the effects of a newly imposed import quota?

• A)Shift the demand for loanable funds right, the supply of dollars in the market for foreign-currency exchange right, and the demand for dollars left.
• B)Shift the demand for loanable funds right, and the supply of dollars in the market for foreign-currency exchange left.
• C)Shift the demand for dollars in the market for foreign-currency exchange left.
• D)None of the above is correct.

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Definitions:

Percent Change

A mathematical calculation that describes the degree of change over time, expressed as a percentage.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded for a given period.

Price Ceiling

a legally established maximum price for goods or services, aimed at keeping prices from rising to high levels.

Equilibrium

A condition in markets where supply equals demand, and there is no external pressure for change.