Refer to the diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. S d + Q is the product supply curve after an import quota is imposed. A quota of wy will:
A. lower domestic price and increase domestic consumption.
B. increase the revenues of domestic producers by areas E + F + K.
C. increase the revenues of domestic producers by areas G + H.
D. increase the revenues of domestic producers by areas E + F + G + H + J.
B. increase the revenues of domestic producers by areas E + F + K.
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When a country's real exchange rate depreciates,
A) its nominal exchange rate must have appreciated. B) its nominal exchange rate must also have depreciated. C) it can trade its goods for fewer units of foreign goods. D) it can trade its goods for more units of foreign goods.
The BIC is a statistic
A) commonly used to test for serial correlation B) only used in cross-sectional analysis C) developed by the Bank of England in its river of blood analysis D) used to help the researcher choose the number of lags in an autoregression