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Under a Fixed Exchange-Rate System and High Capital Mobility,a Contractionary

Question 26

Multiple Choice

Under a fixed exchange-rate system and high capital mobility,a contractionary fiscal policy leads to a:


A) Trade-account deficit and a capital-account surplus
B) Trade-account deficit and a capital-account deficit
C) Trade-account surplus and a capital-account surplus
D) Trade-account surplus and a capital-account deficit

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