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Home > Business & Careers > Economics   »   Closed versus Open Economies Fiscal Policy

 
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Old Dec 3, 2003, 11:07 AM
shandkid
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Closed versus Open Economies Fiscal Policy

Can anyone help with my question???

Compared to a Closed Economy, Open Economy Fiscal Policy is..

a) more effective because of positive reprecussion effects
b) more effective because the marginal propensity to impost is positive
c) the same because domestic fiscal policy has no effect on trade balance
d) less effective because of the proportion of domestic income spent on foreign goods
e) less efective because fiscal policy must be supplemented by restrictive Monetary policy

I greatly appreciate any help!!!

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