Assume That Japan Places a Strict Quota on Goods Imported

question 71

Multiple Choice

Assume that Japan places a strict quota on goods imported from the U.S. and the U.S. places a strict quota on goods imported from Japan. This event should immediately cause the U.S. demand for Japanese yen to ____, and the supply of Japanese yen to be exchanged for U.S. dollars to ____.

• A) increase; increase
• B) increase; decline
• C) decline; decline
• D) decline; increase

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