Impose import quotas

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If the U.S. were to impose import quotas

a. the demand for loanable funds and the demand for dollars in the market for foreign-currency exchange would both increase.

b. neither the demand for loanable funds nor the demand for dollars in the market for foreign-currency exchange would increase.

c. the demand for loanable funds would increase, but the demand for dollars in the market for foreign- currency exchange would not.

 

d. the demand for dollars in the market for foreign-currency exchange would increase, but the demand for loanable funds would not.

Reference no: EM131094648

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