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If the USGovernment Went from a Budget Deficit to a Budget Surplus

Question 24

Multiple Choice

If the U.S.government went from a budget deficit to a budget surplus then


A) the interest rate and the real exchange rate would increase.
B) the interest rate and the real exchange rate would decrease.
C) the interest rate would increase and the real exchange rate would decrease.
D) the interest rate would decrease and the real exchange rate would increase.

Correct Answer:

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