Which of the Following Will Always Cause a Reduction in Net

question 36

Multiple Choice

Which of the following will always cause a reduction in net exports?

• A)an increase in domestic output
• B)a reduction in the real exchange rate
• C)a reduction in government spending
• D)a reduction in investment
• E) all of the above

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Definitions:

Macroeconomic Policy

involves government actions aimed at influencing the overall economic performance of a country, including policies on inflation, unemployment, and economic growth.

Personal Responsibility

The idea that individuals are responsible for their own actions and decisions, and must accept the consequences that come with them.

Work Opportunity Act

Legislation aimed at increasing job opportunities and ensuring workforce development by providing funding and support for employment training and education programs.

Laffer Curve

An economic theory proposing there exists a tax rate at which government revenue is maximized, suggesting that both higher and lower tax rates can lead to decreased revenue.