Author Question: We will generally observe that the less open an economy A) the larger the effect of fiscal policy ... (Read 47 times)

B · **on:** Jun 30, 2018

We will generally observe that the less open an economy

A) the larger the effect of fiscal policy on output and the larger the effect of fiscal policy on the trade position.
B) the larger the effect of fiscal policy on output and the smaller the effect of fiscal policy on the trade position.
C) the smaller the effect of fiscal policy on output and the larger the effect of fiscal policy on the trade position.
D) the smaller the effect of fiscal policy on output and the smaller the effect of fiscal policy on the trade position.

Question 2

In the IS-LM-PC model, which of the following is assumed to be exogenous?

A) G
B) C
C) I
D) Y