Which of the following situations will arise in the domestic market following the imposition of an import quota?
A) imports decrease, domestic production decreases, prices increase
B) imports increase, domestic production decreases, prices decrease
C) imports decrease, domestic production increases, prices increase
D) imports decrease, domestic production increases, prices decrease
C
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The U.S. dollar will depreciate in value if
A) the demand curve for U.S. dollars shifts rightward. B) the demand curve for U.S. dollars shifts leftward. C) the supply curve of U.S. dollars shifts rightward. D) Both answers B and C are correct.
According to the paradox of thrift, if households intend to save more, they will:
a) ultimately spend more. b) cause an increase in jobs because investment will increase. c) ultimately cause job losses. d) cause the GDP to increase because inflation will decrease.