In the Basic Model of a Small Open Economy,if the Government

question 92

Multiple Choice

In the basic model of a small open economy,if the government adopts a policy that lowers imports,then the quantity of exports:

• A) remains unchanged.
• B) decreases but not as much as the quantity of imports decreases.
• C) decreases by exactly the same amount as the quantity of imports decreases.
• D) decreases by more than the quantity of imports decreases.

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