In a Large Open Economy, If an Import Quota Is

question 82

Multiple Choice

In a large open economy, if an import quota is adopted, then:

• A) net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate rises.
• B) net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate falls.
• C) net exports rise and the real exchange rate rises.
• D) net exports rise and the real exchange rate falls.

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Definitions:

Action Potentials

Action potentials are rapid, temporary changes in the electrical charge of a cell's membrane, allowing for the transmission of signals in nerve and muscle cells.

Axons

Long, slender projections of nerve cells (neurons) that transmit electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Myelin

A fatty substance that surrounds and insulates the axons of some neurons, enhancing the speed and efficiency of electrical signal transmission.

Receptor Sites

Specific locations on the surface of a cell or within a cell that are sensitive to certain chemicals, hormones, or neurotransmitters.