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Question 5 (6.25 points) Assume that China places a strict quota on goods imported from Japan and that Japan does not retaliate. Holding other factors

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Question 5 (6.25 points) Assume that China places a strict quota on goods imported from Japan and that Japan does not retaliate. Holding other factors constant, this event should immediately decrease the Chinese demand for Japanese goods (i.e., a decrease in the Chinese imports from Japan); consequently, China BOT (Balance of Trade) deficit will become smaller (i.e., a decrease in the deficit amount) become larger (i.e., a larger deficit)

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