In the New Keynesian open economy model
A) the nominal exchange rate is always fixed.
B) prices are flexible.
C) net exports depends on the relative price of foreign goods to domestic goods.
D) the nominal exchange rate is always flexible.
C
Economics
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When the price level is considered, the value of the multiplier will be less than that suggested by the oversimplified version of multiplier. Why?
What will be an ideal response?
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Which term below fits closest to money functioning as a unit of accounting?
A. liquidity B. standard of value C. medium of exchange D. adverse selection
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