If the U.S. government imposes a quota on toy imports, then net exports of U.S. toys would
A)rise.
B)not change.
C)fall.
D)rise, not change, or fall depending on what happened to the exchange rate.

Question

Quizplus · Accepted Answer

A quota on toy imports would reduce the number of foreign toys entering the U.S., potentially increasing demand for U.S.-made toys both domestically and abroad, thus increasing net exports of U.S. toys.

If the US Government Imposes a Quota on Toy Imports, Then Net