ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Consider two large open economies - U.S. and Europe. If expansionary fiscal policy is adopted in Europe, what happens in the U.S?
Select one:
A.
net capital outflow rises, the real interest rate falls and investment spending rises.
B.
net capital outflow falls, the real interest rate rises and investment spending rises.
C.
net capital outflow falls, the real interest rate rises and investment spending falls.
D.
net capital outflow rises, the real interest rate rises and investment spending falls.
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