In the New Keynesian open economy model, a decrease in the tariff imposed by the SOE on imports causes

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In the New Keynesian open economy model, a decrease in the tariff imposed by the SOE on imports would lead to a decrease in the relative price of foreign goods, making them relatively cheaper for domestic consumers. As a result, the demand for imports would increase, leading to an increase in the demand for net exports. Therefore, the best choice is B, which states that the demand for imports would rise.

In the New Keynesian Open Economy Model, a Decrease in the Tariff