In the monetary small open-economy model with a flexible exchange rate, an increase in the domestic price level has which impact on domestic money demand?

A) It increases it.
B) It decreases it.
C) It has no impact.
D) It depends.


A

Economics

You might also like to view...

The quantity of new cars increases by 10 percent. If the price elasticity of demand for new cars is 1.25, the price of new cars will fall by

A) 2.5 percent. B) 8 percent. C) 10 percent. D) 12.5 percent.

Economics

The main policy tool for manipulating consumer spending is

A. personal income tax. B. corporate income tax. C. capital gains tax. D. None of the above is correct.

Economics

?If a good is offered free of charge, one would:

a. ?stop consuming it when its marginal utility begins to increase. b. ?never consume it because it has no market value. c. ?never stop consuming it. d. ?stop consuming it when its marginal utility begins to fall. e. ?stop consuming it when its marginal utility has declined to zero.

Economics

Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from

A. B to A. B. C to D. C. B to D. D. A to C.

Economics