Increased government spending would have positive effects on net exports and business investments.

Name: Increased government spending would have positive effects on net exports and business investments.
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Question

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Increased government spending can lead to higher interest rates, which may appreciate the domestic currency, making exports more expensive and imports cheaper, potentially worsening net exports. It can also crowd out private investment by increasing competition for funds.

Increased Government Spending Would Have Positive Effects on Net Exports