Following the use of expansionary fiscal policy in the United States,which of the following events will NOT take place?

Question

Quizplus · Accepted Answer

Expansionary fiscal policy typically leads to higher interest rates, which can cause the dollar to appreciate. This makes U.S. goods more expensive abroad, reducing U.S. net exports. Conversely, it makes foreign goods cheaper in the U.S., increasing imports and thus, D) is a likely outcome, not C).

Following the Use of Expansionary Fiscal Policy in the United