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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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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