Suppose in a small open economy, the government increases her tariff on imported goods. Assume this act does not affect the fiscal position of the government. Using the Classical Theories, explain its...

Suppose in a small open economy, the government increases her tariff on
imported goods. Assume this act does not affect the fiscal position of the
government. Using the Classical Theories, explain its long run effects on the
net capital outflow, real exchange rate and trade balance of this economy. No
graph is required