Figure 13-2 -Refer to the Figure13-2.If the Economy Were Initially in Equilibrium

question 130

Multiple Choice

Figure 13-2
-Refer to the Figure13-2.If the economy were initially in equilibrium at r0 and E0 and the government removed import quotas,what would happen to the exchange rate?

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

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Definitions:

Antitrust Law

Laws protecting commerce from unlawful restraints and anticompetitive practices.

Restraint On Trade

Practices or agreements that restrict free competition and trade, often scrutinized and regulated by law.

Rule Of Reason

A test used to determine whether an anticompetitive agreement constitutes a reasonable restraint on trade. Courts consider such factors as the purpose of the agreement, its effect on competition, and whether less restrictive means could have been used.

Per Se Standard

A principle where an action or condition is considered inherently illegal or wrong, without the need for additional proof.