A 20% tariff is placed on Chinese products. -Graph the effects of this kind of protectionist...

A 20% tariff is placed on Chinese products.

-Graph the effects of this kind of protectionist policy for loanable funds. Please label axes, curves, equilibrium values, shifts in curves.

-Longrun effects on real interest rates, levels of investment, real output, net foreign investment

-Graph effects of this policy on foreign currency market. Label axes, curves, equilibrium, shifts in curves.

-Long run effects of imports, net exports, exchange rates, net exports again

- Is this policy good for the trade account? Will this policy decrease imports from china. Why or why not?

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Expert Solution

Rahul Sunny answered 1 year ago

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