If the United States raised its tariff on tires, then at the original exchange rate there would be a Oa. surplus in the market for foreign-currency exchange, so the real exchange rate would appreciate. Ob. shortage in the market for foreign-currency exchange, so the real exchange rate would appreciate. Oc. shortage in the market for foreign-currency exchange, so the real exchange rate would depreciate. Od. surplus in the market for foreign-currency exchange, so the real exchange rate would depreciate.

If the United States raised its tariff on tires, then at the original exchange rate there would be a Oa. surplus in the market for foreign-currency exchange, so the real exchange rate would appreciate. Ob. shortage in the market for foreign-currency exchange, so the real exchange rate would appreciate. Oc. shortage in the market for foreign-currency exchange, so the real exchange rate would depreciate. Od. surplus in the market for foreign-currency exchange, so the real exchange rate would depreciate.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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