Expansionary fiscal policy should raise the exchange rate of the dollar.

Name: Expansionary fiscal policy should raise the exchange rate of the dollar.
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Question

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Expansionary fiscal policy involves an increase in government spending or a decrease in taxation, which can increase the demand for goods and services in the economy. This increased demand can lead to increased imports, putting pressure on the balance of payments and potentially leading to an increase in the exchange rate of the dollar.

Expansionary Fiscal Policy Should Raise the Exchange Rate of the Dollar