WebOn the next chart is the corresponding analysis for a large importer. Suppose the US imports sugar from Brazil and imposes a quota of horizontal distance AB on imports from Brazil. The US price rises to p S U and the Brazilian price falls to p S B. The quota rents in the US are areas + c + e. WebOther things equal, if U.S. disposable income falls, imports will _____ and the current account deficit will _____. fall; increase fall; decrease rise; increase rise; decrease; This …
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