In an Open Economy, Compared with a Closed Economy, You

In an open economy, compared with a closed economy, you should expect

A) fiscal policy to be less effective the potential offset is larger) and monetary policy to be more effective net exports and investment are both sensitive to interest rate changes) .
B) fiscal policy to be less effective because the offset is larger but the effectiveness of monetary policy to be unchanged.
C) both fiscal and monetary policies to be more effective because both net exports and investment are sensitive to changes in the interest rate.
D) both fiscal and monetary policies to be less effective because the potential offsets of both should be larger.
E) none of the above to be true.