Expansionary fiscal policy is a useful instrument which can be used to stimulate aggregate spending in an economy. In the case of an open economy, the use of this type of policy can have a significant impact on the trade balance. Discuss, with the aid of clearly labelled graphs, how such an expansionary policy decision will impact on the goods market and net exports
Expansionary fiscal policy is a useful instrument which can be used to stimulate aggregate spending in an economy. In the case of an open economy, the use of this type of policy can have a significant impact on the trade balance. Discuss, with the aid of clearly labelled graphs, how such an expansionary policy decision will impact on the goods market and net exports
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Expansionary fiscal policy is a useful instrument which can be used to stimulate aggregate spending in an economy. In the case of an open economy, the use of this type of policy can have a significant impact on the trade balance. Discuss, with the aid of clearly labelled graphs, how such an expansionary policy decision will impact on the goods market and net exports |
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