Multiple Choice
Expansionary fiscal policy can lead to a decline in net exports because:
A) it increases interest rates, increasing the exchange value of the dollar and decreasing net exports.
B) it increases interest rates, decreasing the exchange value of the dollar and decreasing net exports.
C) it decreases interest rates, increasing the exchange value of the dollar and decreasing net exports.
D) it decreases interest rates, decreasing the exchange value of the dollar and decreasing net exports.
Correct Answer:
Verified
Correct Answer:
Verified
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