If the USRaised Its Tariff on Tires,then at the Original Exchange Rate

question 79

Multiple Choice

If the U.S.raised its tariff on tires,then at the original exchange rate there would be a

• A)surplus in the market for foreign-currency exchange,so the real exchange rate would appreciate.
• B)surplus in the market for foreign-currency exchange,so the real exchange rate would depreciate.
• C)shortage in the market for foreign-currency exchange,so the real exchange rate would appreciate.
• D)shortage in the market for foreign-currency exchange,so the real exchange rate would depreciate.

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Definitions:

Economic Rent

The extra income earned by a resource owner simply because of ownership, without contributing additional work or investment.

Major League Baseball

The professional baseball organization that is the oldest of the four major professional sports leagues in the United States and Canada.

Secondary Labor Market

Refers to segment of the labor market characterized by low pay, poor job security, and limited career prospects, often involving part-time or temporary work.

Primary Labor Market

Refers to sectors that offer high wages, good benefits, and stable employment, contrasting with the secondary labor market.