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    Exam 19: Output, the Interest Rate, and the Exchange Rate
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    Under a Fixed Exchange Rate Regime,contractionary Fiscal Policy Will Tend
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Under a Fixed Exchange Rate Regime,contractionary Fiscal Policy Will Tend

Question 30

Question 30

Multiple Choice

Under a fixed exchange rate regime,contractionary fiscal policy will tend to cause which of the following?


A) a reduction in imports
B) a reduction in net exports
C) an increase in investment
D) all of the above

Correct Answer:

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