In the classical model with an open economy, an increase in government purchases can affect a country's exchange rate, causing its imports and exports to change

a. True
b. False

A

Economics

You might also like to view...

When a movement up along the aggregate supply curve occurs, there is also

A) no movement along nor a shift in the short-run Phillips curve. B) a rightward shift of the short-run Phillips curve. C) a movement up along the short-run Phillips curve. D) a movement down along the short-run Phillips curve. E) a leftward shift of the short-run Phillips curve.

Economics

The demand for products that provide benefit externalities is generally ________ the demand for products that do not

A) greater than B) less than C) the same as D) greater or less (depending on the market) than

Economics