An Increase in the Use of Quotas Is Expected To

question 73

Multiple Choice

An increase in the use of quotas is expected to:

• A) reduce the country's current account balance, if other governments do not retaliate.
• B) increase the country's current account balance, if other governments do not retaliate.
• C) have no impact on the country's current account balance unless other governments retaliate.
• D) increase the volume of a country's trade with other countries.