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In a large open economy, the government spending increases by 10 billion. Which of the following changes for investment (I) and net export (NX) is
In a large open economy, the government spending increases by 10 billion. Which of the following changes for investment (I) and net export (NX) is most likely to happen in the long run? A. I falls by 4 billion; NX falls by 6 billion. B. I falls by 5 billion; NX rises by 5 billion. C. I falls by 8 billion; NX remains unchanged. D. I rises by 6 billion; NX falls by 4 billion. E. I falls by 4 billion; NX falls by 5 billion
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