4. In a small open economy, the increase in aggregate demand resulting from an increase in government
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4. In a small open economy, the increase in aggregate demand resulting from an increase in government spending is____if the exchange rate is_____than if it is_____.
a. larger, flexible, fixed
b. larger, fixed, flexible
c. smaller, fixed, flexible
d. always zero
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Related Book For 
Principles Of Macroeconomics
ISBN: 9780176591977
7th Canadian Edition
Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie
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