Multiple Choice
If a government started with a deficit and moved to a surplus, which of the following best describes the effects of these changes?
A) Domestic investment and the real exchange rate would rise.
B) Domestic investment and the real exchange rate would fall.
C) Domestic investment would rise, and the real exchange rate would fall.
D) Domestic investment would fall, and the real exchange rate would rise.
Correct Answer:
Verified
Correct Answer:
Verified
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