In an open economy with flexible exchange rates, monetary policy affects ________ through changes in the real interest rate and affects ________ through changes in the exchange rate.
A) taxes and saving; net exports
B) net exports; taxes and saving
C) productivity and growth; consumption
D) consumption and investment; net exports
Correct Answer:
Verified
Q87: When the Fed tightens U.S. monetary policy,
Q88: When the Fed eases U.S. monetary policy,
Q89: All else being equal, if European firms
Q90: Tight monetary policy will _ net exports
Q91: Easy monetary policy reduces the real interest
Q93: A currency devaluation is a(n):
A)increase in the
Q94: Easy monetary policy will _ net exports
Q95: Suppose the government of New Country fixes
Q96: A currency revaluation is a(n):
A)increase in the
Q97: Tight monetary policy raises the real interest
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