Use the figure below to answer the following questions.
Figure 32-2
-Refer to Figure 32-2. If the interest rate were initially at r0 and an import quota was imposed, what would happen to the interest rate?
A) It would stay at r0.
B) It would decrease because supply would shift right.
C) It would increase because supply would shift left.
D) It would decrease because demand would shift left.
Correct Answer:
Verified
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