We Will Generally Observe That the More Open an Economy

question 25

Multiple Choice

We will generally observe that the more open an economy:

• A) the larger the effect of fiscal policy on output and the smaller the effect of fiscal policy on the trade position.
• B) the smaller the effect of fiscal policy on output and the smaller the effect of fiscal policy on the trade position.
• C) the smaller the effect of fiscal policy on output and the larger the effect of fiscal policy on the trade position.
• D) the effect of fiscal policy on output and the trade position is ambiguous.
• E) the larger the effect of fiscal policy on output and the larger the effect of fiscal policy on the trade position.

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Definitions:

Lordosis

A curvature of the spine resulting in an exaggerated inward curve, typically in the lower back, leading to a distinctive posture.

Cervical Bones

Refers to the seven vertebrae in the neck that make up the upper part of the spinal column.

Lumbar

Relating to the lower part of the back.

Thoracic

Pertaining to the chest area, including the ribs, sternum, and thoracic vertebrae.