In the monetary small open-economy model with a fixed exchange rate, an increase in the exchange rate has which impact on domestic money demand?
A) It increases it.
B) It decreases it.
C) It has no impact.
D) It depends.
A
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According to the textbook, the noise of jet engines is not a negative externality for baggage handlers
A) because it leaves no residue in the environment. B) because the benefits are greater than the costs. C) because they are paid to live with the noise. D) because they wear hearing-protection devices. E) unless it leaves them with permanent hearing loss.
The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable
Indicate whether the statement is true or false
Refer to Table 19-3. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals
A) $2,200. B) $1,600. C) $1,400. D) $1,200.
A theory asserts that manufacturers are less willing to sell units of output as the price of a good decreases, ceteris paribus. However, as the price of computers fell throughout the 1990s, more computers were sold. Which of the following best explains the apparent conflict between theory and data? a. The theory must be invalid
b. The theory rests on assumptions that are too simplistic. c. It is likely that variables other than the price and quantity of computers sold were changing. d. All variables other than the price and quantity of computers sold were unchanged.