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Business, 29.04.2021 18:50 makiahlynn706

Crowding out effect from the use of expansionary fiscal policy will be A. insignificant because fiscal policy is highly effective for both open and closed economies in the short run. B. smaller in an open economy because the lower interest rates will increase domestic​ investment, consumption of durables but decrease net exports. C. larger in a closed economy because the higher interest rates will reduce domestic​ investment, consumption of durables and increase net exports. D. larger in an open economy because the higher interest rates will reduce domestic​ investment, consumption of durables and net exports.

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