Multiple Choice
From 2001 to 2004 the U.S.budget went from surplus to deficit.According to the open economy macroeconomic model,this change should have
A) increased U.S.interest rates and increased the real exchange rate of the dollar.
B) increased U.S.interest rates and decreased the real exchange rate of the dollar.
C) decreased U.S.interest rates and increased the real exchange rate of the dollar.
D) decreased U.S.interest rates and decreased the real exchange rate of the dollar.
Correct Answer:
Verified
Correct Answer:
Verified
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