Impact of protectionist trade policy on real exchange rate

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Reference no: EM13830818

Protectionist trade policies are often enacted with the political intention of strengthening exports, and hence GDP. Examples of protectionist trade policies include quotas and import taxes.

a. What is the impact of the protectionist trade policy on the real exchange rate (assume we are using the US as an example, and the US has enacted some protectionist policies)?

b. What is the impact on overall GDP?

Reference no: EM13830818

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