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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