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In the New Keynesian Open Economy Model with a Flexible

Question 48

Multiple Choice
In the New Keynesian open economy model with a flexible exchange rate,an increase in anticipate future total factor productivity
A) has no effects.
B) increases aggregate output.
C) reduces aggregate consumption.
D) causes an exchange rate appreciation.

In the New Keynesian open economy model with a flexible exchange rate,an increase in anticipate future total factor productivity


A) has no effects.
B) increases aggregate output.
C) reduces aggregate consumption.
D) causes an exchange rate appreciation.

Correct Answer:

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