In a Large Country,the Effect of a Given Change in Government

question 61

Multiple Choice

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

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

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Definitions:

Liable

Being legally responsible or obligated to make amends for harm caused to another person or property.

Drawee

The party upon whom a check, draft, or other negotiable instrument is drawn and is expected to pay.

Drawer

In banking and finance, the person who writes or issues a check or draft.

Payee

The individual or entity to whom a payment is made or owed, especially noted in the context of checks or promissory notes.