If a country tries to stimulate the economy with fiscal policy, the effects will be exchange rate
a. depreciation, lower interest rates, and a small increase in aggregate demand.
b. depreciation, higher interest rates, and a small decrease in aggregate demand.
c. appreciation, lower interest rates, and a small increase in aggregate demand.
d. appreciation, higher interest rates, and a small increase in aggregate demand.
d
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Just before, during, and after the recession of 2007-2009, net exports in the United States
A) fell, but remained positive. B) fell and remained negative. C) rose and became positive. D) rose, but remained negative.
Which of the following schools of thought are policy interventionists favoring activist aggregate demand management to stabilize output and employment?
a. Keynesians b. Monetarism c. The new classical economics d. The classical economics e. None of the above