In an open economy with flexible exchange rates, expansionary monetary policy is highly effective in changing real GDP.

Name: In an open economy with flexible exchange rates, expansionary monetary policy is highly effective in changing real GDP.
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Expansionary monetary policy in an open economy with flexible exchange rates can lead to currency depreciation, which boosts exports and increases aggregate demand, thereby effectively increasing real GDP.

In an Open Economy with Flexible Exchange Rates, Expansionary Monetary