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问题

Assume that there is inflation in the United States and the government pursues a contracti


Assume that there is inflation in the United States and the government pursues a contractionary fiscal policy. The likely effect would be that ______.

A.there would be a lower domestic interest rate and an increase in the demand for dollars that would partially offset the policy.

B.there would be a depreciation in the value of the dollar and a decrease in net exports that would partially offset the contractionary fiscal policy.

C.there would be an increase in net exports and an increase in aggregate demand that would partially offset the policy.

D.there would be a decrease in net exports and a decrease in aggregate demand that would partially reinforce the policy.

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