According to the traditional view of government debt (as in the Mundell-Fleming model), if taxes are cut without cutting government spending, then the short-run effects are a(n) ______ of the dollar and a(n) ______ in net exports.

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According to the Mundell-Fleming model, if taxes are cut without cutting government spending, then there will be an increase in disposable income, which will lead to an increase in consumption and hence an increase in imports. This in turn will cause an increase in demand for foreign currencies, leading to an appreciation of the domestic currency. However, this appreciation will cause a decrease in net exports due to the increased price of domestically produced goods in foreign markets. Therefore, the short-run effects of tax cuts without corresponding spending cuts are an appreciation of the dollar and a decrease in net exports.

According to the Traditional View of Government Debt (As in the Mundell-Fleming