Because of their effect on interest rates,
A. capital flows weaken monetary policy but strengthen fiscal policy.
B. capital flows strengthen monetary policy but weaken fiscal policy.
C. the initial effects of a fiscal expansion on aggregate demand are strengthened.
D. the initial effects of a monetary contraction are weakened.
Answer: B
Economics
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Roughly ________ of the increased prices of Japanese automobiles during the 1980s was due to the voluntary export restraints.
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