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When There Is Open International Investment, an Expansionary Fiscal Policy

Question 59

Multiple Choice

When there is open international investment, an expansionary fiscal policy in the U.S. will


A) increase deficits in the U.S. which attracts savings from other countries
B) decrease deficits in the U.S. which causes other countries to experience recessions
C) cause more money to be created in the U.S. which creates deficits
D) causes unemployment to rise in the U.S. which causes a recession

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