Gardenia is a small open economy whose climate does not permit the production of blueberries, so that it must import this fruit to satisfy the large local demand. There is currently a tariff on imports of blueberries. However, in reaction to a recent report by the World Health Organization indicating the substantial health benefits of eating blueberries, consumer groups are pressuring the government to remove the tariff. Gardenia has a floating exchange rate regime. If the tariff is removed, the final impact on Gardenia's economy (according to the Mundell-Fleming model) may be summarized as follows