Question

An economist discussing trade policy in the New Republic wrote: "One of the benefits of the United States removing its trade restrictions [is] the gain to U.S. industries that produce goods for export. Export industries would find it easier to sell their goods abroad—even if other countries didn’t follow our example and reduce their trade barriers."Which of the following statements is true about the effect of a reduction in restrictions of imports? Check all that apply.A. Exports will increase.B. The real exchange rate will remain unchanged.C. Imports will increase.D. Net exports at any given real exchange rate will increase.E. The demand curve for dollars will shift to the left.F. The equilibrium level of net exports will remain unchanged

Answer 1

Answer: the demand curve for dollars will shift to the left added to the above.

Step-by-step explanation:

Answer 2

Answer: The correct answers are "A. Exports will increase." , "C. Imports will increase.", "E. The demand curve for dollars will shift to the left." and "F. The equilibrium level of net exports will remain unchanged".

Step-by-step explanation:

"A. Exports will increase." , "C. Imports will increase.", "E. The demand curve for dollars will shift to the left." and "F. The equilibrium level of net exports will remain unchanged". are TRUE.

B. The real exchange rate will remain unchanged. Is FALSE because the change in the demand curve for dollars leads to a decrease in the real exchange rate.

D. Net exports at any given real exchange rate will increase. is FALSE because net exports at any given real exchange rate will decrease.