Refer to Figure 32-6

question 266

Multiple Choice

Refer to Figure 32-6.If the interest rate were initially at r₂ and an import quota were imposed,the interest rate would

• A) stay at r₂.
• B) decrease because supply would shift right.
• C) increase because supply would shift left.
• D) decrease because demand would shift left.

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Definitions:

Annual Sales

The total revenue a company generates from its operations over the course of a year.

Cash Expenses

Cash expenses are expenditures that a business or individual pays out in cash during a specified period, as opposed to non-cash expenses such as depreciation.

Planetary Gearset

A planetary gearset is a compact and efficient gear system used in transmissions, consisting of one central "sun" gear, multiple "planet" gears that orbit the sun gear, and a "ring" gear encompassing the planet gears.