Multiple Choice
A deficit financed by issuing U.S. Treasury bonds to the private sector will:
A) cause the dollar to appreciate, thereby decreasing the relative price of exports.
B) cause the dollar to depreciate, thereby decreasing the relative price of exports.
C) cause the dollar to appreciate, thereby increasing the relative price of exports.
D) cause the dollar to depreciate, thereby increasing the relative price of exports.
Correct Answer:
Verified
Correct Answer:
Verified
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