Now assume that the US government imposes tariffs on imports, but that they offset the impact of those revenues on the b
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Now assume that the US government imposes tariffs on imports, but that they offset the impact of those revenues on the b
Now assume that the US government imposes tariffs on imports, but that they offset the impact of those revenues on the budget so that the deficit doesn't change. Use our three-graph model linking LF, NCO, and XR to show the impact of this change on real interest rates, NCO, NX, and real exchange rates for the US.
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