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In a large open economy, if the tariff rate is reduced, then: Select one: A. net exports rise and the real exchange rate rises. B.

In a large open economy, if the tariff rate is reduced, then: Select one:

A. net exports rise and the real exchange rate rises.

B. net exports rise and the real exchange rate falls.

C. net exports remain unchanged, as imports and exports increase by equal amounts, while the real exchange rate falls.

D. net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate rises.

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