Question
Suppose the government decides to increase her tariff on all imports. Assume this act does not affect the overall tax receipts. Using the Classical Theories
Suppose the government decides to increase her tariff on all imports. Assume this act does not affect the overall tax receipts.
Using the Classical Theories of a small open economy, explain the effects of this act on the net capital outflow, real exchange rate and trade balance in the long run.
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
8th Canadian Edition
134646355, 9780134842615 , 978-0134646350
