Suppose Policy Makers Want to Reduce Y and Keep NX

Multiple Choice

Suppose policy makers want to reduce Y and keep NX constant. Which of the following policies would most likely achieve this?

A) A decrease in government spending and an increase in the real exchange rate.
B) Encourage the country's trading partners to implement policies that will decrease foreign income.
C) A real exchange rate depreciation.
D) A decrease in government spending.
E) A real exchange rate appreciation.