Which statement is true?
A)In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same in the Keynesian short run,Keynesian long run,and Classical model.
B)In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same in the Keynesian short run and Keynesian long run,but different in the Classical model.
C)In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same in the Keynesian short run and the Classical model,but different in the Keynesian long run.
D)In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same as those in the closed economy IS-LM-FE model.

Question

Quizplus · Accepted Answer

The Answer of Which statement is true?
A)In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same in the Keynesian short run,Keynesian long run,and Classical model.
B)In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same in the Keynesian short run and Keynesian long run,but different in the Classical model.
C)In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same in the Keynesian short run and the Classical model,but different in the Keynesian long run.
D)In the open economy IS-LM-FE model,the impacts of an expansionary fiscal policy are the same as those in the closed economy IS-LM-FE model.

Which Statement Is True