Question: True/False Question - explain your answer 1. With floating exchange rates, the negative effects of international trade shocks on internal balance are worsened by the

True/False Question - explain your answer

1.

With floating exchange rates, the negative effects of international trade shocks on

internal balance are worsened by the effects of the resulting change in the exchange

rate.

2.

International crowding out is the tendency of expansionary fiscal policy to

appreciate the country's currency and worsen the current account

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