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

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose policy makers want to increase net exports (NX) and keep output (Y) constant. Which of the following policies would most likely achieve this?

 

A.an increase in government spending

 

B.a real depreciation

 

C.an increase in government spending and a decrease in the real exchange rate

 

D.a decrease in the real exchange rate and a tax increase

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