A country imposes a tariff on imports from abroad. How does this action change the long-run...

A country imposes a tariff on imports from abroad. How does this action change the long-run real exchange rate between the home and foreign currencies? How is the long-run nominal exchange rate affected? Will this import restriction necessarily improve the home country’s trade balance in the long-run? Explain carefully.

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Rahul Sunny answered 1 year ago

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