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If a Country Tries to Stimulate the Economy with Fiscal

Question 59

Multiple Choice

If a country tries to stimulate the economy with fiscal policy, the effects will be exchange rate


A) depreciation, lower interest rates, and a small increase in aggregate demand.
B) depreciation, higher interest rates, and a small decrease in aggregate demand.
C) appreciation, lower interest rates, and a small increase in aggregate demand.
D) appreciation, higher interest rates, and a small increase in aggregate demand.

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