For This Question, Assume That Equilibrium Output Is Determined in the ZZ-

For this question, assume that equilibrium output is determined in the ZZ- Y diagram. Further assume that policy makers' goals are: (1) to achieve balanced trade to achieve the natural level of output, say Yn. Now suppose that the initial level of equilibrium output is equal to Yn (i.e., Y = Yn) and that a trade deficit exists at this initial level of output. Which of the following policy actions would most likely enable the policy makers to achieve their two goals simultaneously?

A) A decrease in the real exchange rate.
B) A decrease in taxes and increase in the real exchange rate.
C) Convince the country's trading partners to pursue policies that will cause an increase in foreign income.
D) A decrease in government spending.
E) A decrease in government spending and the real exchange rate.