In the basic version of a small open economy model,a reduction in the government's budget deficit ______ net exports and the real exchange rate ______.
A) increases; appreciates
B) increases; depreciates
C) decreases; appreciates
D) decreases; depreciates

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The Answer of In the basic version of a small open economy model,a reduction in the government's budget deficit ______ net exports and the real exchange rate ______.
A) increases; appreciates
B) increases; depreciates
C) decreases; appreciates
D) decreases; depreciates

In the Basic Version of a Small Open Economy Model,a