Multiple Choice
Which statement is true?
A) In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same in the Keynesian short run,Keynesian long run,and Classical model.
B) In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same in the Keynesian short run and Keynesian long run,but different in the Classical model.
C) In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same in the Keynesian short run and the Classical model,but different in the Keynesian long run.
D) In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same as those in the closed economy IS-LM-FE model.
Correct Answer:
Verified
Correct Answer:
Verified
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