Figure 13-2

-Refer to the FigurE₁3-2.Which of the following shifts shows the effects of an import quota?
A)a shift of the supply of Canadian dollars (S-
I) curve to the right
B)a shift from D₀ to D₁
C)a shift from D₀ to D₂
D)a shift of the demand for loanable funds curve to the right

Question

Figure 13-2
 
-Refer to the FigurE₁3-2.Which of the following shifts shows the effects of an import quota?
A)a shift of the supply of Canadian dollars (S-
I) curve to the right 
B)a shift from D₀ to D₁ 
C)a shift from D₀ to D₂ 
D)a shift of the demand for loanable funds curve to the right

Quizplus · Accepted Answer

An import quota typically reduces the supply of foreign goods, leading to an increase in demand for domestic currency to purchase domestic goods, thus shifting the demand curve for the currency to the right from D₀ to D₁.

Figure 13-2 -Refer to the FigurE₁3-2.Which of the Following Shifts Shows the Following