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

Question 14

Multiple Choice

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


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

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