Solved

A Contractionary Fiscal Policy in Canada Which Reduces Domestic Interest

Question 153

Multiple Choice

A contractionary fiscal policy in Canada which reduces domestic interest rates is most likely to:


A) depreciate the international value of the dollar and increase Canadian net exports.
B) depreciate the international value of the dollar and decrease Canadian net exports.
C) appreciate the international value of the dollar and increase Canadian net exports.
D) appreciate the international value of the dollar and decrease Canadian net exports.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q125: Tax revenues automatically increase during economic expansions

Q148: Discretionary fiscal policy is so named because

Q149: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6686/.jpg" alt=" Refer to the

Q150: Crowding out is a decrease in private

Q152: The "crowding-out effect" suggests that:<br>A)the economy's productive

Q154: All else equal, a contractionary fiscal policy

Q155: An inflationary gap can be restrained by

Q156: Due to automatic stabilizers, when income rises,

Q157: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6686/.jpg" alt=" Refer to the

Q158: In an aggregate demand and aggregate supply