In an open economy under flexible exchange rates, expansionary monetary policy that results in an increase in the money supply will always cause
A) an increase in output.
B) an increase in exports.
C) a reduction in the exchange rate, E.
D) all of the above
E) only A and C
D
Economics
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a. True b. False Indicate whether the statement is true or false
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When a relevant variable that is not named on either axis changes,
a. there will be a movement along the curve. b. the curve will rotate clockwise. c. the curve will be unaffected since only the variables on the axis affect the curve. d. the curve will shift.
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