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单项选择题

The IS-LM Model presented in Appendix I of Chapter 16 implies which of the following?
A、Fiscal policy is effective in the short run.
B、A permanent increase in the money supply is more effective than a temporary increase.
C、The relationship between the exchange rate and the domestic output is negative.
D、Fiscal policy may be effective only with a temporary increase in government spending.
E、The exchange rate adjustment to a change in the home interest rate is permanent.

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