Large open economies tend to have
A) domestic price levels highly responsive to exchange rate movements.
B) domestic price levels that respond to exchange rate movements only when their central bank fails to intervene.
C) extreme competition from imports for those goods produced domestically.
D) domestic price levels that respond a great deal to exchange rate movements.
E) little price variation in the prices of the good they import.

Question

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The Answer of Large open economies tend to have
A) domestic price levels highly responsive to exchange rate movements.
B) domestic price levels that respond to exchange rate movements only when their central bank fails to intervene.
C) extreme competition from imports for those goods produced domestically.
D) domestic price levels that respond a great deal to exchange rate movements.
E) little price variation in the prices of the good they import.

Large Open Economies Tend to Have