In a small country, the effect of a given change in government spending:
A) on output and the trade balance is ambiguous.
B) on output is large and the effect on the trade balance is large.
C) on output is small and the effect on the trade balance is large.
D) on output is small and the effect on the trade balance is small.
E) on output is large and the effect on the trade balance is small.
Correct Answer:
Verified
Q48: Explain what the Marshall-Lerner condition represents.
Q51: Which of the following occurs when the
Q52: The existence of the J- curve suggests
Q53: An increase in domestic demand will have
Q54: Suppose policy makers want to reduce Y
Q55: Suppose there is a real exchange rate
Q57: For an open economy, which of the
Q59: Which of the following will occur in
Q60: The evidence suggests that in rich countries,
Q61: Explain the relationship between the current account
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents