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Just need a breif explntion Question 42 In a small open economyr with a oating exchange rate, if the government imposes a tariff on foreign

Just need a breif explntion

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Question 42 In a small open economyr with a oating exchange rate, if the government imposes a tariff on foreign goods, then in the new short-run equilibrium: 0 both imports and exports will remain unchanged. 0 imports will decrease while exports remain constant, leading to a rise in net exports. O imports will decrease and exports will decrease by an equal amount. 0 imports will decrease and exports will increase, leading to a rise in net exports. Question 43 In the ISLM model under the usual conditions in a closed economy, an increase in government spending increases the interest rate and crowds out: 0 prices 0 net export O disposable income 0 investment

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