Under a Fixed Exchange Rate Regime,expansionary Fiscal Policy Will Tend

question 71

Multiple Choice

Under a fixed exchange rate regime,expansionary fiscal policy will tend to cause which of the following?

• A)an increase in imports
• B)an increase in net exports
• C)a reduction in investment
• D)all of the above

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Definitions:

Prototype

An original model or first form of something from which later versions are developed or copied.

Key Attributes

Essential qualities or features that define and differentiate an object, concept, or person.

Waggle Dance

A figure-eight dance performed by honeybees to communicate the direction and distance of a food source to other bees in the hive.

Pheromones

Chemical substances produced and released into the environment by animals, affecting the behavior or physiology of others of the same species.