A tax decrease shifts the IS curve,causing a ________ domestic interest rate,leading to ________ of the dollar.
A) lower,depreciation
B) lower,appreciation
C) higher,depreciation
D) higher,appreciation
Correct Answer:
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Q118: Long-term trends in the exchange rate are
Q119: Figure 6-3 Q120: Figure 6-3 Q121: A rise in U.S.interest rates,all else constant,would Q122: Between 1992 and 1998 U.S.net exports fell Q124: When a fiscal policy stimulus raises both Q125: For the United States,a rise in e Q126: The mechanism of "international crowding-out" is that Q127: Figure 6-3 Q128: The "real exchange rate" is the nominal Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
