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    Principles of Macroeconomics Study Set 8
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    Exam 19: A Macroeconomic Theory of the Open Economy: How Policies and Events Affect an Open Economy
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    If a Government Increases Its Budget Deficit,then the Real Exchange
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If a Government Increases Its Budget Deficit,then the Real Exchange

Question 23

Question 23

Multiple Choice

If a government increases its budget deficit,then the real exchange rate


A) and domestic investment rise.
B) and domestic investment fall.
C) rises and domestic investment falls.
D) falls and domestic investment rises.

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