Question: Under a pure floating exchange rate system, what will a decrease in government spending lead to ? a . a depreciation of the domestic currency

Under a pure floating exchange rate system, what will a decrease in government spending lead to?
a. a depreciation of the domestic currency
b. an appreciation of the domestic currency
c. an increase in foreign reserves held by the central bank
d. a decrease in foreign reserves held by the central bank
e. Government spending does not affect exchange rate
Under a pure floating exchange rate system, what will a decrease

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