Contractionary monetary policy and expansionary fiscal policy both reduce net exports in an open economy
Indicate whether the statement is true or false
TRUE
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Recall the Application. If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, real wages in country A will tend to ________ and employment in country A will tend to ________
A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase
The spending multiplier tells us the:
A. amount by which spending increases when GDP increases by $1. B. fraction of each dollar that will decreases GDP of each dollar spent. C. amount by which GDP decreases when spending on capital goods increases by $1. D. amount by which GDP increases when spending increases by $1.
Inflation that is higher than expected transfers resources from...
What will be an ideal response?
The demand curve for the product of a perfectly competitive firm is
A) downward sloping. B) upward sloping. C) perfectly inelastic. D) perfectly elastic.