NO.PZ201512020800000205
问题如下：
5. The most likely response to Question 2 is a(n):
选项：
A.increase in the price level.
B.decrease in risk premiums.
C.increase in government debt.
解释：
C is correct.
Expansionary fiscal policies result in currency depreciation in the long run. Under a portfolio-balance approach, the assumption is that investors hold a mix of domestic and foreign assets including bonds. Fiscal stimulus policies result in budget deficits which are often financed by debt. As the debt level rises, investors become concerned as to how the on-going deficit will be financed. The country’s central bank may need to create more money in order to purchase the debt which would cause the currency to depreciate. Or, the government could adopt a more restrictive fiscal policy, which would also depreciate the currency.
考点：portfolio-balance approach
解析：注意到，题目提及的是货币在长期的表现。
portfolio-balance approach 本身关注的就是长期，由于扩张的财政政策经常伴随着较高的债务借贷，投资者会担心这样的借贷能不能持续，于是投资者就会撤资，导致本币下降。
于此同时，国家为了解决债务问题，会超发货币赎回债务或者是再次实施一个紧缩的货币政策，这两者都会引起货币的贬值。
这里的中文翻译最后一句翻译错了 是紧缩的财政政策 不是紧缩的货币政策
