Multiple Choice
According to the crowding-out effect, expansionary fiscal policy will lead to
A) higher interest rates, an appreciated dollar, and reduced net exports.
B) higher interest rates, an appreciated dollar, and increased net exports.
C) reduced interest rates, an appreciated dollar, and reduced net exports.
D) reduced interest rates, an appreciated dollar, and increased net exports.
Correct Answer:
Verified
Correct Answer:
Verified
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