In an Open Economy with Internationally Mobile Financial Capital, We

question 78

Multiple Choice

In an open economy with internationally mobile financial capital, we would expect a policy- induced increase in the government's budget deficit to crowd out

• A)consumption more than net exports.
• B)investment more than net exports.
• C)net exports more than investment.
• D)government purchases more than net exports.
• E)consumption more than investment.

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