Multiple Choice
In the short run:
A) monetary expansion causes the CA increase & fiscal expansion causes the CA to decrease.
B) monetary expansion causes the CA to decrease & fiscal expansion causes the CA to decrease.
C) monetary expansion causes the CA to increase & fiscal expansion causes the CA to increase.
D) monetary expansion causes the CA to decrease & fiscal expansion causes the CA to increase.
E) monetary expansion causes the CA to increase & the effects of fiscal expansion are ambiguous.
Correct Answer:
Verified
Correct Answer:
Verified
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