Multiple Choice
If a foreign trading partner of the United States increases its budget deficit, raising interest rates in that country:
A) U.S. exports and AD will both tend to rise.
B) U.S. exports and AD will both tend to fall.
C) U.S. exports will increase but AD will be unchanged.
D) there will be an indeterminate effect on U.S. exports and AD.
Correct Answer:
Verified
Correct Answer:
Verified
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