Which of the following has the effect of an increase in government spending in the case of an open economy framework? a. Rise in the budget deficit and fall in the current account deficit. b. Fall in the budget deficit and rise in current account deficit. c. Rise in both budget deficit and current account deficit. d. Fall in both budget deficit and current account deficit.

Which of the following has the effect of an increase in government spending in the case of an open economy framework? a. Rise in the budget deficit and fall in the current account deficit. b. Fall in the budget deficit and rise in current account deficit. c. Rise in both budget deficit and current account deficit. d. Fall in both budget deficit and current account deficit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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