Suppose That Canada Imposes Restrictions on the Importation of Steel

question 87

Multiple Choice

Suppose that Canada imposes restrictions on the importation of steel into the Canada. According to the open-economy macroeconomic model, which of the following would be the most likely result?

• A)This policy would lower the real exchange rate and increase net exports.
• B)This policy would lower the real exchange rate and have no effect on net exports.
• C)This policy would raise the real exchange rate and decrease net exports.
• D)This policy would raise the real exchange rate and have no effect on net exports.

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Definitions:

Fatty Acids

Long hydrocarbon chains that are found in fats, oils, and waxes, serving as a major source of energy and essential components of cell membranes.

Germinating Seeds

The process by which a seed begins to grow and put out shoots after a period of dormancy.

Endoplasmic Reticulum

A network of membranous tubules within the cytoplasm of eukaryotic cells, involved in protein and lipid synthesis, and calcium storage.

Ribosomes

Cellular organelles that function as the site of protein synthesis, reading mRNA and assembling amino acids into proteins.