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3. Consider the current account function. 3.a. Government cut tax. How would the imports change: Increase, Decrease, or No change? How would the current account
3. Consider the current account function. 3.a. Government cut tax. How would the imports change: Increase, Decrease, or No change? How would the current account change: Increase, Decrease, or No change? 3.b. The nominal exchange rate E fell. Assuming no change in PH and PF, answer questions below. 3.b.(i) How would Home exports and imports change: Increase, Decrease, or No change? Exports: Imports: 3.b.(ii) How would Home current account change: Increase, Decrease, or No change
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