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.
Correct Answer:

Verified
Correct Answer:
Verified
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