In the short run, a temporary increase in fiscal policy causes
A.a shift of the DD curve to the left, an increase in output, and currency appreciation.
B.a shift of the DD curve to the right, a decrease in output, and currency appreciation.
C.a shift of the DD curve to the right, an increase in output, and currency depreciation.
D.a shift of the DD curve to the left, a decrease in output, and currency depreciation.
E.a shift of the DD curve to the right, an increase in output, and currency appreciation.
Answer: E
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