If the United States raised its tariff on tires, then at the original exchange rate there would be a
A) surplus in the market for foreign-currency exchange, so the real exchange rate would appreciate.
B) surplus in the market for foreign-currency exchange, so the real exchange rate would depreciate.
C) shortage in the market for foreign-currency exchange, so the real exchange rate would appreciate.
D) shortage in the market for foreign-currency exchange, so the real exchange rate would depreciate.
Correct Answer:
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