The supply curve for a particular bond is horizontal

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.

If trade in a particular good interindustry, the expansion of an industry in one country is likely to lead to the ________ of that industry in the other country. If trade in that good is intraindustry, expansion of the industry in one country is likely to lead to the ________ in the other country

A) decline, decline B) decline, expansion C) expansion, decline D) expansion, expansion