Under flexible exchange rates, expansionary fiscal policy is less likely to lead to crowding out of investment and more likely to penalize the foreign sector than under fixed rates. Agree? Disagree? Explain.

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The Answer of Under flexible exchange rates, expansionary fiscal policy is less likely to lead to crowding out of investment and more likely to penalize the foreign sector than under fixed rates. Agree? Disagree? Explain.

Under Flexible Exchange Rates, Expansionary Fiscal Policy Is Less Likely