In the New Keynesian open economy model with a fixed exchange rate, an increase by the domestic government in tariffs on imports results in
A) a decline in the interest rate.
B) an increase in aggregate output.
C) a reduction in the money supply.
D) an increase in investment.
E) a decline in aggregate output.
Correct Answer:
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Q13: In the New Keynesian open economy model,
Q14: The real exchange rate is the
A)domestic currency
Q15: In the monetary small open-economy model with
Q16: The balance of payments is zero
A)only if
Q17: In response to a temporary change in
Q19: Under a hard peg
A)only industrialized nations commit
Q20: If a country's central bank seeks to
Q21: If a country's central bank seeks to
Q22: The nominal exchange rate is the
A)price of
Q23: In the monetary small open-economy model with
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