Question
21. In an open economy under flexible exchange rates and represented by the IS-LM-UIP model, a reduction in government spending will cause a reduction in
21. In an open economy under flexible exchange
rates and represented by the IS-LM-UIP model, a
reduction in government spending will cause a reduction in which of the following?
A) net exports
B) the exchange rate, E
C) exports
D) all of the above
E) none of the above
Answer: B
why is the answer b?
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Technology Ventures From Idea To Enterprise From Idea To Enterprise
Authors: Richard C Dorf, Byers
3rd Global Edition
9780071289214
