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    Principles of Macroeconomics Study Set 8
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    Exam 19: A Macroeconomic Theory of the Open Economy: How Policies and Events Affect an Open Economy
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    If a Government Increases Its Budget Deficit,then Interest Rates
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If a Government Increases Its Budget Deficit,then Interest Rates

Question 29

Question 29

Multiple Choice

If a government increases its budget deficit,then interest rates


A) rise and the real exchange rate appreciates.
B) fall and the real exchange rate depreciates.
C) rise and the real exchange rate depreciates.
D) fall and the real exchange rate appreciates.

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