Figure 32-5 Refer to the following diagram of the open-economy macroeconomic model to answer the questions that follow. Graph (a) Graph (b) Graph (c) -Refer to Figure 32-5. If the interest rate were initially at r₂ and an import quota were imposed, the interest rate would A)stay at r₂. B)decrease because supply would shift right. C)increase because supply would shift left. D)decrease because demand would shift left.

Question

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The Answer of Figure 32-5 Refer to the following diagram of the open-economy macroeconomic model to answer the questions that follow. Graph (a) Graph (b) Graph (c) -Refer to Figure 32-5. If the interest rate were initially at r₂ and an import quota were imposed, the interest rate would A)stay at r₂. B)decrease because supply would shift right. C)increase because supply would shift left. D)decrease because demand would shift left.

Figure 32-5 Refer to the Following Diagram of the Open-Economy Macroeconomic Model