Expansionary fiscal policy leads to
A) lower exchange rates, increased exports, and increased imports.
B) higher exchange rates, decreased exports, and decreased imports.
C) lower exchange rates, decreased exports, and decreased imports.
D) higher exchange rates, decreased exports, and increased imports.
Ans: D) higher exchange rates, decreased exports, and increased imports.
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Suppose higher prices lead consumers to switch from shopping at Abercrombie & Fitch to shopping at Wal-Mart. If the CPI does not reflect this change, it is referred to as
A) a new goods bias. B) a quality change bias. C) an outlet substitution bias. D) a new price bias. E) store bias.
Construction workers at times face high rates of unemployment because their work is both seasonal and subject to wide swings over the business cycle
a. True b. False Indicate whether the statement is true or false