Which of the following is the correct way to show the effects of a newly imposed import quota?
A) Shift the demand for loanable funds right, the supply of dollars in the market for foreign-currency exchange right, and the demand for dollars left.
B) Shift the demand for loanable funds right, and the supply of dollars in the market for foreign-currency exchange left.
C) Shift the demand for dollars in the market for foreign-currency exchange left.
D) None of the above is correct.
Correct Answer:
Verified
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