Multiple Choice
Suppose foreigners find U.S. goods and services more desirable for some reason other than a change in the exchange rate. Which policies could be used to offset the resulting change in output?
A) an increase in the money supply and an increase in taxes
B) an increase in the money supply and a decrease in taxes
C) a decrease in the money supply and an increase in taxes
D) a decrease in the money supply and a decrease in taxes
Correct Answer:
Verified
Correct Answer:
Verified
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