International trade tends to lower the value of the multiplier because
A) imports fall as GDP increases.
B) net exports fall as GDP increases.
C) net exports tend to rise as GDP increases.
D) exports fall as GDP increases.
Correct Answer:
Verified
Q110: The reason that higher interest rates reduce
Q111: What important lesson did American economists learn
Q112: For a major country with extensive capital
Q113: A currency depreciation
A)reduces aggregate demand and increases
Q114: A closed economy is one that
A)uses tariffs.
B)uses
Q116: International capital flows are purchases and sales
Q117: Expansionary fiscal policy in an open economy
A)leads
Q118: Because the United States is highly integrated
Q119: Figure 36-5 Q120: Expansionary fiscal policy in an open economy
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