If the U.S. put an import quota on clothes dryers, it would
A) raise U.S. net exports of clothes dryers and raise net exports of other U.S. goods.
B) raise U.S. net exports of clothes dryers and lower net exports of other U.S. goods.
C) lower U.S. net exports of clothes dryers and raise net exports of other U.S. goods.
D) lower U.S. net exports of clothes dryers and lower net exports of other U.S. goods.

Question

Quizplus · Accepted Answer

An import quota on clothes dryers would reduce imports, potentially increasing domestic production and exports of clothes dryers, but could lead to a decrease in net exports of other goods due to changes in trade balances and resource allocation.

If the US Put an Import Quota on Clothes Dryers, It Would