Suppose Policy Makers Want to Increase Y and Keep NX

question 21

Multiple Choice

Suppose policy makers want to increase Y and keep NX 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 reduction in the real exchange rate
• D)a reduction in the real exchange rate
• E) encourage the country's trading partners to implement policies that will cause an increase in foreign income (Y*)

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Definitions:

Numerical Values

Quantitative figures or numbers that represent data, measurements, or quantities.

Line Charts

A type of chart used in data visualization that displays information as a series of data points connected by straight line segments.

Big Data

Refers to extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Data Visualization

The graphical representation of information and data using visual elements like charts, graphs, and maps.