question archive The Long-run Impact of Import TariffA country imposes a tariff on imports from abroad
The Long-run Impact of Import TariffA country imposes a tariff on imports from abroad
Subject:EconomicsPrice: Bought3
The Long-run Impact of Import TariffA country imposes a tariff on imports from abroad. How does this action change the long-run real exchange rate between the home and foreign currencies? How is the long-run nominal exchange rate affected? Will this import restriction necessarily improve the home country’s trade balance in the long-run?
