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Munze Munze
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6 years ago
For this question, assume that policy makers are pursuing a fixed exchange rate regime. Now suppose a budget is passed that calls for a reduction in government spending. This reduction in government spending will cause which of the following to occur?
A) a reduction in i and an increase in E
B) a reduction in investment
C) no change in output
D) no change in net exports
E) an increase in imports
Textbook 
Macroeconomics

Macroeconomics


Edition: 6th
Authors:
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Macroeconomics, 6/E (Blanchard, Johnson)
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vonCOLLINZOvonCOLLINZO
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6 years ago
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Munze Author
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6 years ago
Excellent answer!
Macroeconomics, 6/E (Blanchard, Johnson)
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