In an open economy with fixed(nominal) exchangerates, an increase inoutput, Y wouldrequire:

A.a higher real exchange rate.

B.higher foreign output.

C.lower government spending.

D.all of the above.

Under a fixed exchange rate regime in the mediumrun, if a domestic country has a lower level of inflation than its foreign tradingpartner, net exports will ( ) over time.

decrease

remain constant

increase

over time.