A country imposes a tariff on imports from abroad. Howdoes this action change the long-run real exchange ratebetween the home and foreign currencies? How is the long-runnominal exchange rate affected?
Why does a temporary increase in government spendingcause the current account to fall by a smaller amount thandoes a permanent increase in government spending? Use adiagram to explain your answer.
A country imposes a tariff on imports from abroad. How does this action change the long-run real exchange rate between
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