According to the open-economy macro model, if the U.S. government imposes a quota on imports of...

According to the open-economy macro model, if the U.S. government imposes a quota on imports of jet planes, then

	a.	net capital outflow rises.
	b.	net exports rise.
	c.	the exchange rate rises.
	d.	All of the above are correct.

Solutions

Expert Solution

According to the open economy macro model , if the U.S government imposes a quota on imports of jet plane ,then the exchange rate rises. Hence,option(C) is correct.

Rahul Sunny answered 1 year ago

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