In an open economy, a reduction in government spending will cause
A) an increase in domestic output.
B) an increase in imports.
C) an increase in net exports.
D) all of the above
E) none of the above
D
Economics
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A) the cost to a household of borrowing money when there is deflation B) the opportunity cost of dining in a restaurant instead of at home C) the costs to a firm of changing prices D) the full list of a firm's costs of production
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When a central bank sells bonds, cash reserves throughout the financial system increase, interest rates fall, and investment spending increases
Indicate whether the statement is true or false
Economics