Multiple Choice
In a two-good,two-period model,the government expenditure multiplier
A) is larger in an open economy because net exports fall.
B) is larger in an open economy because net exports are unaffected.
C) is smaller in an open economy because net exports fall.
D) is smaller in an open economy because net exports increase.
E) is larger in an open economy because net exports increase.
Correct Answer:
Verified
Correct Answer:
Verified
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