Multiple Choice
In the basic model of a small open economy,if the government adopts a policy that lowers imports,then that policy:
A) raises the real exchange rate and increases net exports.
B) raises the real exchange rate and does not change net exports.
C) raises the real exchange rate and decreases net exports.
D) lowers the real exchange rate.
Correct Answer:
Verified
Correct Answer:
Verified
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