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Question Practice

In the open economy equilibrium condition, what role does government spending (G) play?

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MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Open Economy Macroeconomics
Question Bank

In the open economy equilibriu...

Single Answer MCQ
Q-00089219

In the open economy equilibrium condition, what role does government spending (G) play?

1

It is variable and depends on income

2

It contributes directly to aggregate demand

3

It only affects net exports

4

It is not considered in open economy analysis

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