Multiple Choice
In a two-period SOE model with production, the government expenditure multiplier
A) is larger in an open economy because net exports fall.
B) is larger in an open economy because net exports are unaffected.
C) is smaller in an open economy because net exports fall.
D) is smaller in an open economy because net exports increase.
E) is larger in an open economy because net exports increase.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: A current account deficit is<br>A) good because
Q2: The key effect of the current account
Q3: For Canada,<br>A) a small open economy assumption
Q4: In a two-period SOE model with production,
Q5: In the two-period SOE model with production,
Q7: An increase in total factor productivity in
Q8: In the two-period SOE model with production,
Q9: Ricardian equivalence suggests that government budget deficits
Q10: The following are all trade agreements:<br>A) ECB,
Q11: When a country runs a current account