Question

fiscal stimulus to close recessionary If global trade increases, it will require gaps because the multiplier will less; increase O more; fall the same; not change

Answer 1

if the global trade increases it means it is beneficial for the whole world and the whole world is moving toward the globalisation

With the more movement of technology, human capital, resources it will be more easier for many countries across the world to cope up with the recession in a much faster and efficient way

So it will require less fiscal stimulus by the government to close the recessionary gap because here the multiplier will increase

The correct answer here is option A