If the United States imposes an import quota on clothing,then U.S.exports
A)increase,U.S.imports increase,and U.S.net exports will not change.
B)increase,U.S.imports decrease,and U.S.net exports increase.
C)decrease,U.S.imports increase,and U.S.net exports decrease.
D)decrease,U.S.imports decrease,and U.S.net exports will not change.

Question

Quizplus · Accepted Answer

An import quota on clothing reduces U.S. imports, and foreign countries may retaliate by reducing their imports of U.S. goods, leading to a decrease in U.S. exports. However, the net exports will not change because the reduction in imports is offset by the reduction in exports.

If the United States Imposes an Import Quota on Clothing,then