An economist discussing trade policy in the New Republic wrote: "One of the benefits of the United States removing its trade to U.S. Industries that produce goods for export. Export industries would find it easier to sell their goods abroad-even if other countries didn't follo our example and reduce their trade barriers." Which of the following statements is true about the effect of a reduction in restrictions of imports? Check all that apply. The demand curve for dollars will shift to the left. O Net exports at any given real exchange rate will decrease. OImports will increase. Exports will remain unchanged. OThe equilibrium level of net exports will decrease. The real exchange rate will increase.
An economist discussing trade policy in the New Republic wrote: "One of the benefits of the United States removing its trade to U.S. Industries that produce goods for export. Export industries would find it easier to sell their goods abroad-even if other countries didn't follo our example and reduce their trade barriers." Which of the following statements is true about the effect of a reduction in restrictions of imports? Check all that apply. The demand curve for dollars will shift to the left. O Net exports at any given real exchange rate will decrease. OImports will increase. Exports will remain unchanged. OThe equilibrium level of net exports will decrease. The real exchange rate will increase.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter21: International Trade And Comparative Advantage
Section: Chapter Questions
Problem 6DQ
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![An economist discussing trade policy in the New Republic wrote: "One of the benefits of the United States removing its trade restrictions [is] the gain
to U.S. Industries that produce goods for export. Export industries would find it easier to sell their goods abroad-even if other countries didn't follow
our example and reduce their trade barriers."
Which of the following statements is true about the effect of a reduction in restrictions of imports? Check all that apply.
O The demand curve for dollars will shift to the left.
Net exports at any given real exchange rate will decrease.
OImports will increase.
Exports will remain unchanged.
OThe equilibrium level of net exports will decrease.
The real exchange rate will increase.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22f9c458-6ed0-44bd-8c05-235a25a8851a%2F5b6feccf-348c-4e59-bb09-1b4336149cb4%2F777mb4s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An economist discussing trade policy in the New Republic wrote: "One of the benefits of the United States removing its trade restrictions [is] the gain
to U.S. Industries that produce goods for export. Export industries would find it easier to sell their goods abroad-even if other countries didn't follow
our example and reduce their trade barriers."
Which of the following statements is true about the effect of a reduction in restrictions of imports? Check all that apply.
O The demand curve for dollars will shift to the left.
Net exports at any given real exchange rate will decrease.
OImports will increase.
Exports will remain unchanged.
OThe equilibrium level of net exports will decrease.
The real exchange rate will increase.
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