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Euphrasia, a mixed open​ economy, was severely affected by a recession that almost paralyzed its service sector. The Euphrasian government announced a fiscal stimulus package of​ $15,000 billion to boost economic growth. GDP of the economy was expected to increase by 2.5 percent during the following year after the implementation of the fiscal stimulus package.​ However, it was observed that instead of​ increasing, the GDP of Euphrasia actually declined by 0.75 percent that year. Which of the​ following, if​ true, will explain this​ outcome?A. one of Euphraisia's neighboring countries, which is a closed economy, experienced a sudden decline in output and prices. B. Oil imports declined as countries exporting oil reduced supply. C. A NUMBER OF PUBLIC SECTOR ENTERPRISES IN eUPHRAISIA WERE PRIVATIZED. D. Euphraisia's population increased by4.5percent that year. E. The gross saving rate in the economy declined during that year.

User Jmacedo
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Answer:

B. Oil imports declined as countries exporting oil reduced supply.

User Galengodis
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