Suppose Policy Makers Want to Increase Y and Keep NX

Multiple Choice

Suppose policy makers want to increase Y and keep NX constant.Which of the following policies would most likely achieve this?

A) an increase in government spending
B) a real depreciation
C) an increase in government spending and a reduction in the real exchange rate
D) a reduction in the real exchange rate
E) encourage the country's trading partners to implement policies that will cause an increase in foreign income (Y*)