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If an Economy Sees Net Exports Fall Due to a Policy

Question 65

Multiple Choice

If an economy sees net exports fall due to a policy of trade liberalization,it will require the simultaneous adoption of ________ fiscal policy or ________ monetary policy in order to prevent a(n) ________ gap.


A) expansionary;expansionary;recessionary
B) expansionary;contractionary;recessionary
C) contractionary;contractionary;expansionary
D) contractionary;expansionary;recessionary
E) expansionary;expansionary;expansionary

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