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Category > Economics Posted 02 Jun 2017 My Price 7.00

Analyze the output and balance of payments effects of an import tariff

1. Using the DD-AA model, analyze the output and balance of payments effects of an import tariff under fixed exchange rates. What would happen if all countries in the world simultaneously tried to improve employment and the balance of payments by imposing tariffs? 

2. When a central bank devalues after a balance of payments crisis, it usually gains foreign reserves. Can this capital inflow be explained using our model? What would happen if the market believed another devaluation was to occur in the near future?

 

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Status NEW Posted 02 Jun 2017 07:06 AM My Price 7.00

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file 1496387271-1907982_1_636319297556390846_1907982.docx preview (85 words )
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