Suppose policy makers want to increase NX and keep Y constant. ...

[james9437]

Suppose policy makers want to increase NX and keep Y constant. Which of the following policies would most likely achieve this?
 
  A) a reduction in government spending
  B) a real depreciation
  C) a reduction in government spending and a reduction in the real exchange rate
  D) a reduction in the real exchange rate and a tax cut

Question 2

For this question, assume that the economy is initially operating at the natural level of output. A reduction in consumer confidence will cause
 
  A) an increase in the real wage in the medium run.
  B) a reduction in the real wage in the medium run.
  C) no change in the real wage in the medium run.
  D) ambiguous effects on the real wage in the medium run.

[daiying98]

Answer to Question 1

C

Answer to Question 2

C

[james9437]

Thanks for the timely response, appreciate it

[cici]

Gracias!