Suppose policy makers want to increase net exports (NX) and keep output (Y) constant. Which of the following policies would most likely achieve this? A.an increase in government spending B.a real depreciation C.an increase in government spending and a decrease in the real exchange rate D.a decrease in the real exchange rate and a tax increase
Suppose policy makers want to increase net exports (NX) and keep output (Y) constant. Which of the following policies would most likely achieve this? A.an increase in government spending B.a real depreciation C.an increase in government spending and a decrease in the real exchange rate D.a decrease in the real exchange rate and a tax increase
Chapter8: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 14QP
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Suppose policy makers want to increase net exports (NX) and keep output (Y) constant. Which of the following policies would most likely achieve this?
A.an increase in government spending
B.a real
C.an increase in government spending and a decrease in the real exchange rate
D.a decrease in the real exchange rate and a tax increase
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