-Refer to Figure 32-6. If the economy were initially in equilibrium at r1 and e3 and the government removes import quotas, the exchange rate moves to
A)e5
B)e4
C)e2
D)e1

Question

-Refer to Figure 32-6. If the economy were initially in equilibrium at r1 and e3 and the government removes import quotas, the exchange rate moves to
A)e5 
B)e4 
C)e2 
D)e1

Quizplus · Accepted Answer

The Answer of 
-Refer to Figure 32-6. If the economy were initially in equilibrium at r1 and e3 and the government removes import quotas, the exchange rate moves to
A)e5 
B)e4 
C)e2 
D)e1