In the New Keynesian open economy model
A) the nominal exchange rate is always fixed.
B) prices are flexible.
C) net exports depends on the relative price of foreign goods to domestic goods.
D) the nominal exchange rate is always flexible.
E) the real interest rate is determined by the central bank.
Correct Answer:
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Q45: The balance of payments is zero
A) because
Q46: In the monetary small open-economy model, a
Q47: In response to a temporary change in
Q48: In response to a temporary change in
Q49: A capital inflow occurs when
A) a domestic
Q51: Capital controls refer to
A) controls placed on
Q52: The acquisition of a new physical asset
Q53: In the New Keynesian open economy model
Q54: The acquisition of a domestic financial asset
Q55: The adoption of capital controls makes
A) everyone
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