If the Government of Colombia Implemented a Policy That Reduced

Multiple Choice

If the government of Colombia implemented a policy that reduced national saving,which statement would best predict the consequences?

A) Its real exchange rate would depreciate,and Colombian net exports would rise.
B) Its real exchange rate would depreciate,and Colombian net exports would fall.
C) Its real exchange rate would appreciate,and Colombian net exports would rise.
D) Its real exchange rate would appreciate,and Colombian net exports would fall.