During periods of economic downturn, there is frequently pressure to protect domestic production from foreign competitio

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During periods of economic downturn, there is frequently
pressure to protect domestic production from foreign competition in
the belief that protectionist policies will save domestic jobs.
Economic theory predicts that protectionist policies in a large
open economy with floating exchange rate
system ______________________________
Not change the NX schedule nor the exchange rate, but increase
net exports and domestic output.
shift the NX schedule leading to a higher exchange rate, but
will not change in net exports nor domestic output.
shift the NX schedule leading to a lower exchange rate,
increasing net exports and domestic output.
shift the NX schedule leading to a higher exchange rate,
lowering net exports and domestic output.