The Net Export Effect Occurs When

question 115

Multiple Choice

The net export effect occurs when

• A)increased government spending is used to buy goods made in foreign countries.
• B)Canadians invest overseas because they believe the government is spending and taxing too much.
• C)increased borrowing by the government due to expansionary fiscal policy generates a change in the exchange rate that causes net exports to fall.
• D)expansionary fiscal policy induces people to migrate to other countries.

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