We Will Generally Observe That the More Open an Economy

Multiple Choice

We will generally observe that the more open an economy:

A) the larger the effect of fiscal policy on output and the smaller the effect of fiscal policy on the trade position.
B) the smaller the effect of fiscal policy on output and the smaller the effect of fiscal policy on the trade position.
C) the smaller the effect of fiscal policy on output and the larger the effect of fiscal policy on the trade position.
D) the effect of fiscal policy on output and the trade position is ambiguous.
E) the larger the effect of fiscal policy on output and the larger the effect of fiscal policy on the trade position.