In a Large Country, the Effect of a Given Change

question 9

Multiple Choice

In a large country, the effect of a given change in government spending:

• A) on output and the trade balance is ambiguous.
• B) on output is large and the effect on the trade balance is small.
• C) on output is small and the effect on the trade balance is large.
• D) on output is large and the effect on the trade balance is large.
• E) on output is small and the effect on the trade balance is small.