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Question 4(Multiple Choice Worth 3 points) (06.04 MC) Assume that the value of the U.S. dollarincreased in the foreign exchange market due to a change

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Question 4(Multiple Choice Worth 3 points) (06.04 MC) Assume that the value of the U.S. dollarincreased in the foreign exchange market due to a change in the real GDP, ceteris paribus. Which of the following fiscal policy actions will bring about such a change? O An expansionary fiscal policy involves increasing government spending, which increases real output depreciating the dollar. O An expansionary fiscal policy involves increasing government spending, which decreases real output depreciating the dollar. O A contractionary fiscal policy involves decreasing government spending, which decreases real output appreciating the dollar. A contractionary fiscal policy involves decreasing government spending, which increases real output appreciating the dollar. O A contractionary fiscal policy involves increasing government spending, which decreases real output depreciating the dollar

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