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In a Fixed Exchange Rate Regime, Which of the Following

Question 22

Multiple Choice

In a fixed exchange rate regime, which of the following policies could be implemented to increase a trade deficit and leave aggregate demand constant?


A) Increase government spending and devalue the currency.
B) Decrease government spending.
C) Increase government spending and revalue the currency.
D) Increase government spending.
E) Revalue the currency.

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