Suppose Foreigners Find U

question 250

Multiple Choice

Suppose foreigners find U.S. goods and services more desirable for some reason other than a change in the exchange rate. Which policies could be used to offset the resulting change in output?

• A)an increase in the money supply and an increase in taxes
• B)an increase in the money supply and a decrease in taxes
• C)a decrease in the money supply and an increase in taxes
• D)a decrease in the money supply and a decrease in taxes