When a country imposes a trade restriction, the real exchange rate of that country's currency appreciates.

Name: When a country imposes a trade restriction, the real exchange rate of that country's currency appreciates.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

When a country imposes a trade restriction, it makes it more difficult for other countries to import goods from that country. This reduces the demand for that country's currency, causing it to depreciate.

When a Country Imposes a Trade Restriction, the Real Exchange