Which of the following statements is false?
A) If the US imposes a quota on Japanese car imports, the price of cars in the US is likely to increase.
B) If the US imposes a tariff on Japanese car imports, the price of cars in the US is likely to increase.
C) If Japan imposes a subsidy on car exports to the US, the price of cars in the US is likely to increase.
D) If Japan imposes a 'voluntary export restraint' on car exports to the US, the price of cars in the US is likely to increase.
Correct Answer:
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