Expansionary Fiscal Policy in an Open Economy Has a

question 209

Multiple Choice

Expansionary fiscal policy in an open economy has a

• A)greater effect than in a closed economy.
• B)similar effect in a closed economy.
• C)smaller effect than in a closed economy.
• D)greater effect than monetary policy.

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Definitions:

Supply Determined

A scenario where the quantity of goods available in the market is primarily dictated by the supply side, rather than consumer demand.

Spruce Goose

The nickname for the Hughes H-4 Hercules, famously known as the largest wooden airplane ever constructed and flown only once.

Fixed in Supply

Pertains to goods or resources that have a limited or unchangeable quantity available, regardless of demand.

High-Speed Rail

A type of rail transport that operates significantly faster than traditional rail traffic, using specialized rolling stock and dedicated tracks.