Multiple Choice
Suppose that Brunei has a floating exchange rate and experiences high capital mobility.Assume that Brunei is suffering from a recession and it also has a trade deficit.Other things equal, which of the following policy options is likely to achieve overall balance for Brunei?
A) expansionary monetary policy
B) contractionary monetary policy
C) expansionary fiscal policy
D) contractionary fiscal policy
Correct Answer:
Verified
Correct Answer:
Verified
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