A contractionary fiscal policy in Canada which reduces domestic interest rates is most likely to:
A) depreciate the international value of the dollar and increase Canadian net exports.
B) depreciate the international value of the dollar and decrease Canadian net exports.
C) appreciate the international value of the dollar and increase Canadian net exports.
D) appreciate the international value of the dollar and decrease Canadian net exports.
Correct Answer:
Verified
Q41: The federal budget deficit is found by
A)subtracting
Q172: Other things equal, which of the policies
Q173: The higher domestic interest rate resulting from
Q174: Assume the government incurs a budget deficit
Q175: An expansionary fiscal policy in Canada might
Q176: Which one of the following best describes
Q178: Crowding-out is the notion that:
A)since tax revenues
Q179: The crowding-out effect suggests that:
A)increases in consumption
Q180: If the government adopts a fiscal policy
Q182: Foreign individuals and institutions hold about what
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents