In a Small Country, the Effect of a Given Change

Multiple Choice

In a small country, the effect of a given change in government spending:

A) on output and the trade balance is ambiguous.
B) on output is large and the effect on the trade balance is large.
C) on output is small and the effect on the trade balance is large.
D) on output is small and the effect on the trade balance is small.
E) on output is large and the effect on the trade balance is small.