Suppose Policy Makers Want to Reduce NX and Keep Y

Multiple Choice

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

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