As interest rates rise,other things equal,
A) investment decreases.
B) money demand decreases.
C) capital inflows increase.
D) All of the above.
Correct Answer:
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Q1: With fixed exchange rates,perfect asset substitutability,and perfect
Q2: Which of the following would not cause
Q3: If foreign countries simultaneously stimulate their economies
Q4: With floating exchange rates
A)monetary policy is effective.
B)fiscal
Q6: With fixed exchange rates,a country
A)cannot conduct independent
Q7: Complete crowding out occurs when
A)monetary policy has
Q8: The LM curve represents combinations of income
Q9: External balance refers to
A)an economy which is
Q10: With fixed exchange rates,perfect asset substitutability,and perfect
Q11: A point to the left of the
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