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Assume That a Small Open Economy Gets Involved in a Global

Question 99

Multiple Choice

Assume that a small open economy gets involved in a global war,in which its government purchases increase and the rest of the world's government purchases also increase.Then,for the basic model of the small country,net exports:


A) will certainly decrease.
B) will certainly increase.
C) may increase or decrease.
D) will remain the same.

Correct Answer:

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