In an open economy, an expansionary fiscal policy:
A) is very effective in changing real GDP.
B) is not effective in changing real GDP.
C) is not effective in changing the exchange rate.
D) is not effective in changing capital flows between countries.
E) greatly increases the price level.

Question

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The Answer of In an open economy, an expansionary fiscal policy:
A) is very effective in changing real GDP.
B) is not effective in changing real GDP.
C) is not effective in changing the exchange rate.
D) is not effective in changing capital flows between countries.
E) greatly increases the price level.

In an Open Economy, an Expansionary Fiscal Policy