Which One of the Following Best Describes the Net Export

Multiple Choice

Which one of the following best describes the net export effect associated with an expansionary Canadian fiscal policy?

A) domestic interest rate falls, foreign demand for dollars rises, dollar appreciates, and net exports increase.
B) domestic interest rate falls, foreign demand for dollars rises, dollar appreciates, and net exports fall.
C) domestic interest rate rises, foreign demand for dollars falls, dollar depreciates, and net exports increase.
D) domestic interest rate rises, foreign demand for dollars increases, dollar appreciates, and net exports decline.