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:

Verified
Correct Answer:
Verified
Related Questions
Q129: The U.S.trade deficit must be cured by
Q130: Assume that Country X and Country Y
Q131: An increase in the U.S.price level relative
Q132: A currency appreciation<br>A)reduces aggregate demand and increases
Q133: What are the economic effects of a
Q135: Protectionism may fail to reduce a current
Q136: A fall in the domestic interest rate
Q137: A currency appreciation reduces aggregate demand and
Q138: Which of the following would lead to
Q139: If Japan experiences a period of deflation