Each of the following is an international shock that will affect the IS-LM equilibrium except
A) changes in foreign real GDP.
B) changes in the foreign real interest rate.
C) changes in expectations of the foreign inflation rate.
D) changes in foreign exchange speculators' view about the fundamental value of the exchange rate.
Correct Answer:
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Q41: If the expected rate of inflation decreases,
Q42: If the expected rate of inflation increases,
Q43: Any change in the interest sensitivity of
Q44: Any change in the marginal propensity to
Q45: Any change in the economic environment and
Q47: An increase in foreign real GDP will
A)
Q48: A decrease in foreign real GDP will
A)
Q49: A decrease in the foreign real interest
Q50: An increase in the foreign real interest
Q51: The curve that indicates that a decrease
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