Question
In a small open economy, if the Bank of Canada allows the exchange rate to vary freely, an expansionary fiscal policy causes the dollar to
In a small open economy, if the Bank of Canada allows the exchange rate to vary freely, an expansionary fiscal policy causes
the dollar to appreciate and net exports to fall.
the dollar to appreciate and net exports to rise.
the dollar to depreciate and net exports to fall.
the dollar to depreciate and net exports to rise.
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
