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Given Fixed Exchange Rates, Assume Mexico Initiates Expansionary Monetary and Fiscal

Question 42

Multiple Choice

Given fixed exchange rates, assume Mexico initiates expansionary monetary and fiscal policies to combat recession.Other things equal, these policies will also


A) increase both imports and exports.
B) increase exports and reduce imports.
C) reduce a balance-of-payments surplus.
D) reduce a balance-of-payments deficit.

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