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    Economics Principles and Policy Study Set 2
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    Exam 36: Exchange Rates and the Macroeconomy
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    The Expected Effects of Fiscal Contraction Are
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The Expected Effects of Fiscal Contraction Are

Question 134

Question 134

Multiple Choice

The expected effects of fiscal contraction are


A) higher real interest rates.
B) exchange rate depreciation.
C) increased trade deficit.
D) All of these responses are correct.

Correct Answer:

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