Whenever U.S. government spending increases, thereby increasing the demand for real balances and the rate of interest, the currency will appreciate and there is a potential for:
A) overshooting.
B) crowding out.
C) a Republican backlash.
D) recession.

Question

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The Answer of Whenever U.S. government spending increases, thereby increasing the demand for real balances and the rate of interest, the currency will appreciate and there is a potential for:
A) overshooting.
B) crowding out.
C) a Republican backlash.
D) recession.