If it wants to reduce the dollars flowing out of the country, the United States can limit the number of Japanese cars being imported by imposing a(n)
A) free trade zone.
B) GATT.
C) trade deficit.
D) balance of trade.
E) import quota.

Question

Quizplus · Accepted Answer

An import quota is a government-imposed limit on the quantity of a particular good that can be imported into a country. By limiting the number of Japanese cars being imported, the United States can reduce the dollars flowing out of the country and improve its balance of trade.

If It Wants to Reduce the Dollars Flowing Out of the Country