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According to the Keynesians

Question 3

Multiple Choice

According to the Keynesians,


A) an easy-fiscal tight-monetary policy reduces the trade deficit,such as what occurred during the 1980s.
B) an easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S.exports,as was experienced during the 1980s.
C) there was not a link between the rising government budgetary deficit and the rising trade deficit during the mid-1980s.
D) budget deficits and trade deficits should not be a source of concern

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