In a small open economy with a flexible exchange rate, the "crowding-out effect on investment" Question 19 options: A. will further expand aggregate demand increases brought about by expansionary fiscal policy, while the "crowding out effect on net exports" will even further expand aggregate demand B. will have an offsetting effect on aggregate demand increases brought about by expansionary fiscal policy, while the "crowding-out effect on net exports" will further expand aggregate demand C. will further expand aggregate demand increases brought about by expansionary fiscal policy, while the "crowding out effect on net exports" will reduce aggregate demand D. will have an offsetting effect on aggregate demand increases brought about by expansionary fiscal policy, while the "crowding-out effect on net exports" will further reduce aggregate demand