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Here are my questions. Thank you! Suppose a nation has consistently run a budget deficit for many years. If the size of the government budget

Here are my questions. Thank you!

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Suppose a nation has consistently run a budget deficit for many years. If the size of the government budget deficit decreases, this will decrease the merchandise trade deficit, since: A. Demand for loanable funds will decrease. B. The interest rates will go up. O C. The nation's currency will appreciate. O D. Capital inflows will increase. E. The nation's capital account balance will be credited.A contractionary fiscal policy will: O A. increase interest rates and increase the value of a country's currency, leading to a larger trade deficit. O B. increase interest rates and decrease the value of a country's currency, leading to a smaller trade surplus. O C. increase interest rates and decrease the value of a country's currency, leading to a smaller trade deficit. D. increase interest rates and increase the value of a country's currency, leading to a larger trade surplus. O E. decrease interest rates and decrease the value of a country's currency, leading to a larger trade surplus

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