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Roar Roar
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6 years ago
For this question, assume that there is a simultaneous increase in government spending and monetary contraction. In a flexible exchange rate regime, we know with certainty that such a policy mix will cause which of the following?
A) an increase in the domestic interest rate
B) an increase in the exchange rate
C) a reduction in net exports
D) all of the above
E) only A and C
Textbook 
Macroeconomics

Macroeconomics


Edition: 6th
Authors:
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vonCOLLINZOvonCOLLINZO
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6 years ago
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Roar Author
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#2
5 years ago
Tough macro class, thanks for helping
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