In an open economy with flexible exchange rates, monetary policy affects ________ through changes in the real interest rate and affects ________ through changes in the exchange rate.

A. productivity and growth; consumption
B. taxes and saving; net exports
C. consumption and investment; net exports
D. net exports; taxes and saving


Answer: C

Economics

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According to the U.S. Robinson-Patman Act of 1936, price discrimination

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Nations would gain from trade if a(n) _________ exists

a. absolute advantage b. exchange rate c. specialization d. comparative advantage e. terms of trade

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A monopolist's profit-maximizing level of output occurs where:

a. marginal revenue equals marginal cost. b. price equals marginal cost. c. average total cost is at a minimum. d. price equals average revenue.

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A beneficial supply shock that has a prolonged impact on the economy permanently increases output and lowers prices

Indicate whether the statement is true or false

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