Under a fixed exchange rate regime, suppose there is an increase in housing wealth that causes an increase in consumption. This wealth-induced increase in consumption will cause
A) an increase in investment.
B) a reduction in net exports.
C) an increase in imports.
D) all of the above
E) none of the above
D
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What will be an ideal response?
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A. concert at a local indoor arena B. satellite radio signal C. lecture in your college's auditorium D. radio signal broadcast through the air