In an open economy with flexible exchange rates, monetary policy affects consumption and investment by changing the ________ and affects net exports by changing the ________.
A. real interest rate; exchange rate
B. exchange rate; real interest rate
C. growth of domestic real GDP; growth of foreign real GDP
D. inflation rate; unemployment rate
Answer: A
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If there are approximately 8,000 barrels of known reserves of oil, annual consumption of oil is 500 barrels,
and it is estimated that the supply of oil will be depleted in 30 years, how many barrels of unknown reserves of oil are there estimated to be, all else equal? A) 1,333 B) 7,000 C) 12,000 D) 48,000
Free entry is said to exist in an industry when:
A) all firms entering an industry enjoy economies of scale. B) entry is unfettered by any special legal or technical barriers. C) equal amounts of inputs are available to all firms entering an industry. D) the government subsidizes costs for all new firms entering an industry.