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For the FIRST dropdown ... the options are either, LOWER, HIGHER, SMALLER, or LA

ID: 1121068 • Letter: F

Question

For the FIRST dropdown ... the options are either, LOWER, HIGHER, SMALLER, or LARGER

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Complete the sentence below, using both the drop down menu and the multiple choice sections. Select answer sized economies can a observe sudden hikes in inflation regardless of their fiscal policies This is due to the following: A g increase in the external supply of a good a small economy depends on exporting. O decrease Quick increases in aggregate | exceeding aggregate de demand O supply O demand. O supply. A largeO O inflowof investment by countries abroad. O outflow

Explanation / Answer

Smaller sized economies can observe sudden hikes in inflation regardless of their fiscal policies.  

This is due to the following:

A large increase in the external supply of a good a small economy depends on exporting

Quick increase in aggregate demand exceeding aggregate supply.

A large outflow of investment by countries abroad.