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In a Two-Good,two-Period Model with Trade,an Increase in Government Spending

Question 32

Multiple Choice

In a two-good,two-period model with trade,an increase in government spending will have a tendency to cause


A) interest rates to rise.
B) the trade balance to improve.
C) the domestic exchange rate to appreciate.
D) the taxes to increase.
E) the current account surplus to decrease.

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