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Which of the following will occur in a small country with a high marginal propensity to import? O A depreciation will cause only small changes in the trade balance. 0 There is no combination of policies that can eliminate the trade deficit. 0 Changes in government spending will cause large changes in output. 0 Changes in government spending will cause large changes in the trade balance. 0 Changes in government spending will cause large changes in consumption In a closed economy, an increase in the marginal propensity to consume from .5 to .7 will cause: 0 the 22 line to become steeper and a given change in government spending (G) to have a larger effect on output. O the 22 line to become steeper and a given change in government spending (G) to have a smaller effect on output. 0 the 22 line to become flatter and a given change in government spending (G) to have a larger effect on output. 0 the 22 line to become flatter and a given change in government spending (G) to have a smaller effect on output. 0 the 22 line to become flatter and a given change in government spending (G) to have no effect on output. The existence of the J-curve indicates that which of the following will occur after a depreciation? O The trade deficit and the real exchange rate will remain unchanged. O The real exchange rate will fall temporarily before it rises. O The real exchange rate will rise temporarily before it falls. 0 The trade deficit will worsen temporarily before it improves. O The trade deficit will improve temporarily before it worsens