If in the long run, imports are paid for by exports, then
A) any restriction of imports ultimately reduces exports.
B) any restriction of imports ultimately expands exports.
C) any restriction of imports has no impact on exports.
D) any restriction of exports has no impact on imports.

Question

Quizplus · Accepted Answer

According to the statement "imports are paid for by exports," any restriction on imports will ultimately reduce exports, as there will be fewer goods being purchased from foreign countries, which in turn means that those countries will have less money to spend on exports from the restricting country. Therefore, choice A is the correct answer.

If in the Long Run, Imports Are Paid for by Exports