Explain how the imposition of a tariff by foreign governments (on our exports) affects real GDP and the overall price level (under flexible exchange rates) in each of the extended versions of the Mundell–Fleming model.
Explain how the imposition of a tariff by the domestic government (on our imports) affects real GDP and the overall price level (under flexible exchange rates) in each of the extended versions of the Mundell–Fleming model.
Explain how an increase in world interest rates affects real GDP and the overall price level (under flexible exchange rates) in each of the extended versions of the Mundell–Fleming model.