Under a fixed exchange rate system, a currency devaluation ...

[leilurhhh]

Under a fixed exchange rate system, a currency devaluation ________ the nominal exchange rate and will ________ net exports.
 
  A) increase; increase
  B) increase; decrease
  C) decrease; increase
  D) decrease; decrease

Question 2

In the long run, larger budget deficits lead to ________.
 
  A) higher saving levels
  B) a fall in investment
  C) lower interest rates
  D) all of the above
  E) none of the above

[otokexnaru]

Answer to Question 1

C

Answer to Question 2

B

[leilurhhh]

YES! Correct, THANKS for helping me on my review

[cpetit11]

Thanks for the timely response, appreciate it