Multiple Choice
Because of their effect on interest rates,
A) capital flows weaken monetary policy but strengthen fiscal policy.
B) capital flows strengthen monetary policy but weaken fiscal policy.
C) the initial effects of a fiscal expansion on aggregate demand are strengthened.
D) the initial effects of a monetary contraction are weakened.
Correct Answer:

Verified
Correct Answer:
Verified
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Q32: Table 36-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Table 36-2
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