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If a government increases its budget deficit, then interest ratesA. rise and the real exchange rate appreciates.B. fall and the real exchange rate depreciates.C. rise

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If a government increases its budget deficit, then interest ratesA. rise and the real exchange rate appreciates.B. fall and the real exchange rate depreciates.C. rise and the real exchange rate depreciates.D. fall and the real exchange rate appreciates.

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