We Will Generally Observe That the More Open an Economy

question 66

Multiple Choice

We will generally observe that the more open an economy

• A)the larger the effect of fiscal policy on output and the larger the effect of fiscal policy on the trade position.
• B)the larger 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 smaller the effect of fiscal policy on output and the smaller the effect of fiscal policy on the trade position.

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Definitions:

Agriculture

The activity of farming the land, cultivating plants, and breeding animals for human needs and sustenance.

Causes

The reasons or motives behind certain events, actions, or outcomes, identifying why something happens.

Bumper Crop

An unusually large harvest of crops in a particular year.

Fluctuations

Variations or changes in a condition or value over time, often observed in economic indicators, prices, or activity levels.