A permanent fiscal expansion under a flexible exchange rate regime, A) shifts the DD and the AA
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Question:
A permanent fiscal expansion under a flexible exchange rate regime,
A) shifts the DD and the AA schedules to the right, increasing output.
B) shifts the DD and the AA schedules to the right, decreasing output.
C) shifts the DD to the right and the AA schedule to the left, leaving output the same.
D) shifts the DD to the left and the AA schedule to the left, decreasing output.
E) shifts the DD and the AA schedules to the left, leaving output the same.
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