A country imposes a tariff on imports from abroad How does this action change the long run real exchange rate between the home and foreign currencies How is the long run nominal exchange rate affected ...

Long run nominal exchange rate affected in such a way that th ...

A country imposes a tariff on imports from abroad. How does this action change the long-run real

Question:

A country imposes a tariff on imports from abroad. How does this action change the long-run real between the home and foreign currencies? How is the long-run nominal affected?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...