Suppose the government share of GDP is 20 percent and the consumption, investment, and net export shares of GDP are 60, 15, and 5 percent, respectively. If the dollar exchange rate increases, then we would expect
A) the government share of GDP to increase.
B) the interest rate to decrease.
C) the interest rate to increase.
D) the government share of GDP to decrease.
E) the net export share of GDP to increase.
Correct Answer:
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