We will generally observe that the less open an economy A) the ...

[B]

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

[AmberC1996]

Answer to Question 1

B

Answer to Question 2

A

[B]

Excellent

[bdobbins]

Gracias!