Q.

According to the Keynesians,

A. An easy-fiscal tight-monetary policy reduces the trade deficit, such as what occurred during the 1980s
B. An easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s
C. There was not a link between the rising government budgetary deficit and the rising trade deficit during the mid-1980s
D. Budget deficits and trade deficits should not be a source of concern
Answer» B. An easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s
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