Under a fixed exchange rate system,an expansionary fiscal policy is
A) more effective in an open economy than in a closed economy.
B) less effective in an open economy than in a closed economy.
C) equally effective in an open economy and in a closed economy.
D) marginally effective in an open economy and completely ineffective in a closed economy.
Correct Answer:
Verified
Q60: Assume the economy is initially in equilibrium
Q61: Figure 13.3 Q62: Under a fixed exchange rate system,an expansionary Q63: Expenditure and tax multipliers are likely to Q64: Briefly explain the effects on potential GDP
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