Multiple Choice
Suppose foreigners find U.S.goods and services more desirable for some reason other than a change in the exchange rate.Which policies could be used to offset the resulting change in output?
A) an increase in the money supply and an increase in government purchases.
B) an increase in the money supply and a decrease in government purchases.
C) a decrease in the money supply and an increase in government purchases.
D) a decrease in the money supply and a decrease in government purchases.
Correct Answer:
Verified
Correct Answer:
Verified
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