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.
D
Economics
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What will be an ideal response?
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A) demand equals supply. B) quantity demanded equals quantity supplied. C) surpluses are greater than shortages. D) shortages are greater than surpluses.
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