In the New Keynesian open economy model, suppose the exchange rate is flexible and there is a decline in total factor productivity
A) contractionary monetary policy is necessary.
B) expansionary monetary policy is necessary.
C) no policy intervention is necessary.
D) expansionary fiscal policy is necessary.
E) the central bank should reduce the real interest rate.
Correct Answer:
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Q1: In the monetary small open-economy model with
Q2: In the New Keynesian open economy model,
Q3: If the real exchange rate is high,
Q4: Adoption of a currency board
A)is one method
Q5: In the New Keynesian open economy model
Q7: In the monetary small open-economy model, a
Q8: A flexible exchange rate is determined by
A)buying
Q9: In the monetary small open-economy model with
Q10: In the monetary small open-economy model with
Q11: In the monetary small open-economy model with
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