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In the New Keynesian Open Economy Model, an Increase in the Tariff

Question 2

Multiple Choice

In the New Keynesian open economy model, an increase in the tariff imposed by the rest of the world on the exports of the SOE causes


A) the demand for imports to rise.
B) the demand for imports to fall.
C) the demand for exports to rise.
D) the demand for net exports to rise.
E) the demand for exports to fall.

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