Refer to Figure 32-6

question 27

Multiple Choice

Refer to Figure 32-6.If the economy were initially in equilibrium at r₂ and E₃ and the government removed import quotas,the exchange rate would

• A) appreciate to E₄.
• B) appreciate to E₂.
• C) depreciate to E₁.
• D) depreciate to E₂.

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Definitions:

Spinal Cord

The central nerve bundle running down the spine that transmits messages between the brain and the body.

Sympathetic Nervous

Part of the autonomic nervous system responsible for the 'fight or flight' response, preparing the body for action.

Autonomic Nervous

Part of the nervous system that controls involuntary bodily functions such as heart rate, digestion, and respiratory rate.

Parasympathetic Nervous

Part of the autonomic nervous system responsible for relaxation and conservation of energy by slowing the heart rate and increasing intestinal and gland activity.