Multiple Choice
If the government of Colombia implemented a policy that reduced national saving, which of the following best predicts 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.
Correct Answer:

Verified
Correct Answer:
Verified
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