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    Economics Principles and Policy Study Set 2
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    Exam 36: Exchange Rates and the Macroeconomy
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    In an Open Economy, an Increase in (G − T)
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In an Open Economy, an Increase in (G − T)

Question 154

Question 154

Multiple Choice

In an open economy, an increase in (G − T) will


A) decrease (X − IM) .
B) increase (X − IM) .
C) leave (X − IM) unchanged.
D) have an unpredictable effect on (X − IM) .

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