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Use the Figure Below to Answer the Following Questions

question 158

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Use the figure below to answer the following questions.
Figure 32-2 Use the figure below to answer the following questions. Figure 32-2   -Refer to Figure 32-2. If the economy were initially in equilibrium at r<sub>0 </sub>and E<sub>0</sub> and the government removed import quotas, what would happen to the exchange rate? A) It would appreciate to E<sub>1</sub>. B) It would appreciate to E<sub>2</sub>. C) It would depreciate to E<sub>1</sub>. D) It would depreciate to E<sub>2</sub>.
-Refer to Figure 32-2. If the economy were initially in equilibrium at r0 and E0 and the government removed import quotas, what would happen to the exchange rate?

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Definitions:

Lichens

Symbiotic associations between a fungus and a photosynthetic partner (usually an algae or cyanobacteria), living together on surfaces like rocks or trees.

Algae

A diverse group of photosynthetic organisms that are not necessarily closely related, ranging from unicellular microalgae to large multicellular forms, inhabiting both freshwater and marine environments.

Chytrid Fungi

A group of primitive pathogenic fungi that can infect amphibian skins, significantly contributing to global declines in amphibian populations.

Chytridomycota

A phylum of fungi characterized by producing spores with flagella; they are mostly aquatic.

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