In an open economy, an increase in government spending will cause
A) a reduction in domestic output.
B) a reduction in imports.
C) a reduction in net exports.
D) all of the above
E) none of the above
D
Economics
You might also like to view...
Countries that engage in trade will tend to specialize in goods in which they have a(n) _______ and will _______ those goods.
A) comparative advantage; import B) absolute advantage; export C) comparative advantage; export D) economic profit; import
Economics
Coins and paper bills used as money:
a. currency b. commodity money c. representative money d. fiat money
Economics