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Business, 29.04.2021 19:00 gilaarkalji

An article in the Wall Street Journal refers to Switzerland as​ "a small, open economy highly dependent on​ Europe." ​Source: Brian​ Blackstone, "As Swiss Economy​ Blooms, Central Bank Presents a​ Quandary," Wall Street Journal​, March​ 15, 2018. Is fiscal policy in Switzerland likely to be more or less effective than it would be in a less open​ economy? Briefly explain. A. Fiscal policy will have a larger impact on aggregate demand in an open economy than in a less open economy. B. Contractionary fiscal policy will be more effective in an open economy than in a less open economy. C. Expansionary fiscal policy will be more effective in an open economy than in a less open economy. D. Fiscal policy will have a smaller impact on aggregate demand in an open economy than in a less open economy.

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