In 2006, President of nation A imposed tariffs on imported goods (especially on nation B's products which led to the trade war between nation A and B). What are the effects on each of the following: loanable fund market, net capital outflow, and foreign currency exchange market in nation A ? (here, the domestic country is nation A)

a. Which side of the economy is influenced? Explain why.

b. How is it influenced? (increase or decrease)

c. Identify the new equilibrium; compare it to the initial equilibrium. What do you expect from this political event? Explain the results.