If the Government Adopts a Fiscal Policy That Is

Multiple Choice

If the government adopts a fiscal policy that is:

A) expansionary, then net exports are likely to expand and reinforce the effects of the fiscal policy.
B) contractionary, then net exports are likely to decline and partially offset the effects of the fiscal policy.
C) contractionary, then net exports are likely to rise and reinforce the effects of the fiscal policy.
D) expansionary, then net exports are likely to decline and partially offset the effects of the fiscal policy.