Assume that the Russia places a strict quota on goods imported from the U.S. and that the U.S. does not retaliate. Holding other factors constant, this event should immediately cause the Russian demand for US dollars to ____ and the value of the dollar to ____.   decline; increase   decline; decline   increase; increase   increase; decline

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
Problem 38QA
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Assume that the Russia places a strict quota on goods imported from the U.S. and that the U.S. does not retaliate. Holding other factors constant, this event should immediately cause the Russian demand for US dollars to ____ and the value of the dollar to ____.

 
decline; increase
 
decline; decline
 
increase; increase
 
increase; decline
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