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A Decrease in the Government's Budget Deficit

Question 26

Multiple Choice

A decrease in the government's budget deficit


A) will lead to a decrease in imports, a depreciated dollar, an increase in exports, and a decrease in the international trade deficit.
B) will lead to an increase in imports, an appreciated dollar, a decrease in exports, and an increase in the international trade deficit.
C) will lead to an increase in imports, a depreciated dollar, an increase in exports, and an uncertain effect on the international trade deficit.
D) will lead to a decrease in imports, an appreciated dollar, a decrease in exports, and an uncertain effect on the international trade deficit.

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