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Assume that United Kingdom and U.S. engage in a significant trade relationship. You are told that the British government imposes quotas on imports by British

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Assume that United Kingdom and U.S. engage in a significant trade relationship. You are told that the British government imposes quotas on imports by British companies and that U.S. consumers can benefit of a higher income per capita thanks to a stimulus package just signed by the U.S. government. As a result of these combined effects, the U.S. demand for pounds would [_]. the supply of pounds for sale would [__], and the equilibrium value of the pound would [_].]. Decrease, decrease, decrease Increase, decrease, increase Remain unchanged, increase, decrease Remain unchanged, decrease, increase Increase, decrease, increase

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