Multiple Choice
In an open economy, expansionary fiscal policy causes:
A) interest rates to rise and an inflow of foreign capital.
B) interest rates to fall and an inflow of foreign capital.
C) interest rates to rise and an outflow of foreign capital.
D) interest rates to fall and an outflow of foreign capital.
E) no change in interest rates and an inflow of foreign capital.
Correct Answer:
Verified
Correct Answer:
Verified
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