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.

Question

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The Answer of 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.

In the Monetary Small Open-Economy Model with a Fixed Exchange