An increase in government spending will have a greater impact on net exports when
A) the marginal propensity to save is smaller.
B) the economy is closed.
C) the sensitivity of investment to income is smaller.
D) all of the above
E) none of the above
Correct Answer:
Verified
Q29: Which of the following will always cause
Q30: Which of the following would make the
Q31: A change in which of the following
Q32: An increase in the marginal propensity to
Q33: Policy coordination is difficult because each country
A)prefers
Q35: Which of the following conditions must be
Q36: An increase in which of the following
Q37: An open economy with a low saving
Q38: A change in which of the following
Q39: An increase in domestic demand will have
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