What about monetary and fiscal policy can we use them

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Reference no: EM131036614

Since GDP = C + I + G + Net Exports, it stands to reason that when C and I are low in a recession and net export spending is essentially dependent on foreigners, the only stimulatory policy open to government is via G through changes in its budget.

Do you agree? Justify your answer. what about monetary and fiscal policy can we use them in that situation ?

Reference no: EM131036614

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