If the U.S.were to Impose Import Quotas

question 59

Multiple Choice

If the U.S.were to impose import quotas

• A)the demand for loanable funds and the demand for dollars in the market for foreign-currency exchange would both increase.
• B)nether the demand for loanable funds nor the demand for dollars in the market for foreign-currency exchange would increase.
• C)the demand for loanable funds would increase,but the demand for dollars in the market for foreign-currency exchange would not.
• D)the demand for dollars in the market for foreign-currency exchange would increase,but the demand for loanable funds would not.

---

Definitions:

Average Variable Cost

The variable cost of production divided by the quantity produced, showing the cost of producing each additional unit.

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit cost of production for a firm.

Rising

An increase or upward trend in value, quantity, or importance.

Average Variable Cost

The total variable cost divided by the number of units produced, representing the variable cost per unit of output.