Why Is the Multiplier for Contractionary Fiscal Policy Smaller in an Open

question 108

Multiple Choice

Why is the multiplier for contractionary fiscal policy smaller in an open economy?

• A)Contractionary fiscal policy reduces the deficit, which raises the interest rate, which raises the foreign exchange value of the dollar, which increases net exports.
• B)Contractionary fiscal policy increases the deficit, which raises the interest rate, which reduces the foreign exchange value of the dollar, which increases net exports.
• C)Contractionary fiscal policy reduces the deficit, which reduces the interest rate, which reduces the foreign exchange value of the dollar, which increases net exports.
• D)Contractionary fiscal policy reduces the deficit, which reduces the interest rate, which reduces the foreign exchange value of the dollar, which decreases net exports.
• E)Contractionary fiscal policy reduces the deficit, which raises the interest rate, which in turn increases foreign investment.

Understand the structure and function of female reproductive anatomy.

Describe the process and location of fertilization in the female reproductive system.

Identify the hormonal regulation of the female reproductive system.

Explain the menstrual cycle, including phases and hormonal changes.

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Definitions:

Working Memory

A mental system tasked with briefly maintaining data for processing.

Storage

The process or method by which information, data, or goods are kept for future use or retrieval.

Retrieval

The process of accessing and bringing into conscious thought information stored in memory.

Infant Categorization

The process by which infants begin to organize objects, people, and concepts in their environment into categories.