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Refer to Shoe Quota

question 130

Essay

Refer to Shoe Quota. At a given exchange rate what does a quota do to desired net exports? As a result of this change which curve in the open-economy model shifts and which direction does it shift?


Definitions:

Ratio

An arithmetic ratio that illustrates the frequency with which one number incorporates another, depicting how many times one value is contained within another.

Equivalent Ratio

Ratios that express the same relationship between numbers, despite being scaled differently.

Smallest Term

The minimum value or term in a set, sequence, or collection of numbers or values.

Ratio

A link between two digits signifying the frequency with which the first digit embodies the second.

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