According to the Open-Economy Macroeconomic Model,import Quotas Increase Which of the Following

question 162

Multiple Choice

According to the open-economy macroeconomic model,import quotas increase which of the following

• A)net exports and net capital outflow
• B)net exports but not net capital outflow.
• C)net capital outflow but not net exports.
• D)neither net exports nor net capital outflow.

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Definitions:

Quoted

Refers to the current price of a security, commodity, or currency that is stated in communication or trading.

Bond

A fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Sell

The act of giving or handing over something in exchange for money or other compensation.

Premium

An amount paid regularly to insure something or to cover the cost of a policy, also used to describe the amount paid over the nominal value of something.