Multiple Choice
If the government of a country adopts a contractionary monetary policy,________.
A) the real interest rate falls, followed by a decrease in net exports and a decrease in the exchange rate
B) the real interest rate rises, followed by an increase in net exports and a decrease in the exchange rate
C) the real interest rate rises, followed by a decrease in net exports and an increase in the exchange rate
D) the real interest rate falls, followed by an increase in net exports and a decrease in the exchange rate
Correct Answer:
Verified
Correct Answer:
Verified
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