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    Exam 17: Macroeconomic Policy and Floating Exchange Rates
  5. Question
    When Exchange Rates Are Flexible, Expansionary Fiscal Policy Indirectly Leads
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When Exchange Rates Are Flexible, Expansionary Fiscal Policy Indirectly Leads

Question 101

Question 101

True/False

When exchange rates are flexible, expansionary fiscal policy indirectly leads to a capital inflow and a current account surplus.

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