Significant expansionary fiscal policy

Reference no: EM1373608

Assume a country has been running a significant expansionary fiscal policy for several years. Monetary policy has not been particularly expansionary. Determine what can you expect to happen to this nations's trade balance? What are the costs and benefits of this trade imbalance? If the country wished to correct for its trade imbalance, what fiscal and monetary policies would you suggest this country pursue now? [This question would be worth 15 marks]

Reference no: EM1373608

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