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    Economics Principles and Policy Study Set 1
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    Exam 37: Exchange Rates and the Macroeconomy
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    The Combined Effects of a Fiscal Contraction and a Monetary
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The Combined Effects of a Fiscal Contraction and a Monetary

Question 92

Question 92

Multiple Choice

The combined effects of a fiscal contraction and a monetary expansion are


A) higher real interest rates.
B) exchange rate depreciation.
C) increased current account deficit.
D) All of the above are correct.

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