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Consider an Open- Economy AD/AS Macro Model

Question 83

Multiple Choice

Consider an open- economy AD/AS macro model. An expansionary fiscal policy will generally increase the government's budget _ _ and also tends to and thus _ net exports.


A) surplus; appreciate the currency; decrease
B) deficit; appreciate the currency; decrease
C) deficit; appreciate the currency; increase
D) deficit; depreciate the currency; decrease
E) surplus; depreciate the currency; increase

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