In a small open economy with flexible exchange rates,a fiscal contraction would
A)increase domestic output.
B)decrease domestic output.
C)have no effect on domestic output.
D)cause an exchange rate appreciation.

Question

Quizplus · Accepted Answer

The Answer of In a small open economy with flexible exchange rates,a fiscal contraction would
A)increase domestic output.
B)decrease domestic output.
C)have no effect on domestic output.
D)cause an exchange rate appreciation.

In a Small Open Economy with Flexible Exchange Rates,a Fiscal