In an open economy,an increase in government spending will cause

Name: In an open economy,an increase in government spending will cause
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An increase in government spending will lead to an increase in aggregate demand, which will cause an increase in domestic output. However, it will also lead to an increase in imports, as consumers and businesses will demand more foreign goods and services. This will lead to a reduction in net exports, as exports will remain the same but imports will increase.

In an Open Economy,an Increase in Government Spending Will Cause