1. Chile had tried to expand its exports by channeling a great deal of its fiscal and financial resources to raise the productivity of its export-oriented industries. This policy left limited resources for investment and productivity growth in the non-tradable sector of the economy. Over the years. such a policy is likely to have

a)raised both exports and the real exchange rate in the long run.

b)raised exports while lowering the real exchange rate, in the long run.

c)lowered both exports and the real exchange rate in the long run.

d)lowered exports while raising the real exchange rate in the long run.

e)had no net effect on exports and the real exchange rate in the long run.