Multiple Choice
In a small open economy with a flexible exchange rate, what will an expansionary fiscal policy cause?
A) the dollar to depreciate
B) the dollar to appreciate
C) net exports to increase
D) a lasting effect on aggregate demand
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q47: How do tax cuts and government expenditure
Q48: When the government reduces taxes, all other
Q49: Which of the following defines the government
Q50: Which of the following defines the government
Q51: If the multiplier is 10, what is
Q53: What effects do supply-side economists believe that
Q54: What is the term for the fraction
Q55: Why and in what way are fiscal
Q56: When making a case against active stabilization
Q57: Both the multiplier and the investment accelerator