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Some politicians argue for imposing trade restrictions in the hope that doing so will reduce the trade deficit of Canada. Assuming Canada has a oating

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Some politicians argue for imposing trade restrictions in the hope that doing so will reduce the trade deficit of Canada. Assuming Canada has a oating exchange rate, answer the following questions regarding the impact of the trade restrictions. a. What's the impact in the foreign exchange market for dollars? O "he demand for dollars decreases. O 'he supply of dollars decreases. 0 "he supply of dollars increases. 0 "he demand for dollars increases. b. What is the impact in the market for the foreign currency (euros, yen, eth? 0 "he supply offoreign currency decreases. 0 "he demand for foreign currency decreases. 0 "he supply offoreign currency increases. 0 "he demand forforeign currency increases. c. What happens to the exchange rate value of the dollar? 0 "he value of the currency does not change. 0 "he dollar depreciates. O "he dollar appreciates. d. What happens to net exports? 0 Net exports can go either way. O Net exports will increase. O Net exports will decrease

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