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 left,the supply of dollars in the market for foreign- currency exchange left,and the demand for dollars in the market for foreign-currency exchange right
B)shift the demand for loanable funds left,the supply of dollars in the market for foreign- currency exchange right,and the demand for dollars in the market for foreign-currency exchange left
C)shift the demand for dollars in the market for foreign-currency exchange to the right
D)shift the supply of dollars in the market for foreign-currency exchange to the left

Question

Quizplus · Accepted Answer

An import quota reduces the quantity of imports, leading to a decrease in the supply of dollars in the foreign exchange market as fewer dollars are needed to buy foreign goods. This causes the demand for dollars to increase, shifting the demand curve to the right.

Which of the Following Is the Correct Way to Show