In the monetary small open-economy model, a fixed exchange rate insulates the domestic price level from
A) both real and nominal shocks from abroad.
B) real shocks from abroad, but not nominal shocks from abroad.
C) nominal shocks from abroad, but not from real shocks from abroad.
D) neither real nor nominal shocks from abroad.
B
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Figure 36-6
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In Figure 36-6, which of the following will cause a movement from equilibrium at point D to equilibrium at point B?
A. An appreciation of the dollar B. A depreciation of the dollar C. A depreciation of the Japanese yen D. An increase in the U.S. price level
If you got a new job and moved to Dale, Indiana (population 1,500), you would expect to find two grocery stores. The market form is
A. oligopoly. B. monopoly. C. monopolistic competition. D. perfect competition.
When individuals are unemployed because they lack the qualifications to fill available jobs, this is called
What will be an ideal response?
A(n) ________ is a trade policy by which a nation agrees to limit its exports of a good in order to avoid more restrictive trade policies.
A. tariff B. voluntary export restraint (VER) C. import quota D. import ban