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You Have Just Noticed That the Dollar Appreciated and You

Question 3

Multiple Choice

You have just noticed that the dollar appreciated and you suspect that U.S.policymakers were behind this change.Which would you choose as the most likely cause of this appreciation in the real exchange rate?


A) An increase in the money supply
B) A decrease in the money supply
C) A temporary increase in government purchases
D) A temporary decrease in taxes

Correct Answer:

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