The country of Leverett is a small open economy. Suddenly, a change in world fashions makes the

Question:

The country of Leverett is a small open economy. Suddenly, a change in world fashions makes the exports of Leverett unpopular.
a. What happens in Leverett to saving, investment, net exports, the interest rate, and the The citizens of Leverett like to travel abroad. How will this change in the affect them?
c. The fiscal policymakers of Leverett want to adjust taxes to maintain the at its previous level. What should they do? If they do this, what are the overall effects on saving, investment, net exports, and the interest rate? Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...