If the federal budget has an actual budget surplus of 75 billion, but a cyclically adjusted budget surplus of 50 billion, then the economy must be above potential real GDP.
Indicate whether the statement is true or false
Question 2
How does expansionary monetary policy affect net exports?
A) Expansionary monetary policy reduces exports and increases imports.
B) Expansionary monetary policy reduces exports and reduces imports.
C) Expansionary monetary policy increases exports and reduces imports.
D) Expansionary monetary policy increases exports and increases imports.
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