If the united states imposes an import quota on clothing, u. s.

a. increase, exports increase, and u. s. net exports are unchanged.

b. increase, exports decrease, and u. s. net exports increase.

c. decrease, exports increase, and u. s. net exports decrease.

d. decrease, exports decrease, and u. s. net exports are unchanged.

The correct answer is letter "D": decrease, exports decrease, and U.S. net exports are unchanged.

Explanation:

Imposing tariffs may have negative consequences for a country. Typically, this option is taken when the government tries to boost the purchase of domestic products but the countries imposed the quotas impose some other tariffs as well for retaliation. Both exports and imports of those countries are likely to decrease in that case since products become more expensive.

The net exports are calculated by subtracting the total of imports from the total of exports of a country. Under the scenario explained above, under a trade war, the net exports will remain unchanged since both imports and exports will decrease. For a change, only one of them must vary.

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explanation:

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