A contractionary fiscal policy negates some of the leftward shift of the aggregate demand curve because the resulting fall in interest rates
A) increases the quantity of investment, raises the exchange rate and boosts net exports.
B) discourages savings, decreases the quantity of investment, raises the exchange rate, and reduces net exports.
C) increases the quantity of investment, lowers the exchange rate, and boosts net exports.
D) discourages savings, increases consumption, and reduces the quantity of investment and imports.
Correct Answer:
Verified
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Q121: Use the following to answer questions .
Exhibit:
Q122: Suppose the economy experiences a recessionary gap.
Q123: Supply-side economics is the school of thought
Q124: Contractionary fiscal policy will lead to a(n)
A)
Q126: Which of the following are possible consequences
Q127: As discussed in the Case in Point
Q128: Use the following to answer questions .
Exhibit:
Q129: According to Professor Baotai Wang who examined
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A)
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