Answer: D. Depreciate but does not change the real interest rate in the United States. An import quota on lumber will reduce the demand for foreign currency by U.S. importers, causing the U.S. dollar to depreciate in value.
However, the real interest rate in the United States won't be impacted because it is influenced more by the Federal Reserve's monetary policy than by the volume of imports.
Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life. How much of an asset's value has been used is shown through depreciation. It enables businesses to purchase assets over a predetermined length of time and generate income from those assets.
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