Q5 Consider a small open economy in the short run. .

(a) Given a floating exchange rate sketch a graph of a tax decrease.

(b) What direction (+/-/or no change) does the tax decrease impact: Y, r, e, C and NX Y______ r ______ e ______ C ______ NX ______

(c) Given a fixed exchange rate sketch a graph of trade tariffs.

(d) What direction (+/-/or no change) does the tax decrease impact: Y, r, e, and C Y______ r ______ e ______ C____ NX ______

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now