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
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According to the U.S. Robinson-Patman Act of 1936, price discrimination
A) is always illegal. B) is legal unless it harms competition. C) may be used to drive rivals out of business. D) can only be justified if the price discrimination is due to actual cost differences.
Nations would gain from trade if a(n) _________ exists
a. absolute advantage b. exchange rate c. specialization d. comparative advantage e. terms of trade
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.
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