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    Principles of Macroeconomics
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    Exam 16: The Influence of Fiscal Policy on Aggregate Demand
  5. Question
    In a Small Open Economy with Perfect Capital Mobility, If
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In a Small Open Economy with Perfect Capital Mobility, If

Question 64

Question 64

Multiple Choice

In a small open economy with perfect capital mobility, if exchange rates are fixed, how could aggregate demand be increased?


A) by increasing government expenditures
B) by increasing tax rates
C) by increasing the money supply
D) by decreasing the money supply

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