In Response to a Temporary Change in Total Factor Productivity

Multiple Choice

In response to a temporary change in total factor productivity, the adoption of capital controls under a fixed exchange rate

A) amplifies the effect of this disturbance on both domestic output and the domestic nominal money supply.
B) amplifies the effect of this disturbance on domestic output and dampens the effect on the domestic nominal money supply.
C) dampens the effect of this disturbance on domestic output and amplifies the effect on domestic nominal money supply.
D) dampens the effect of this disturbance on both domestic output and the domestic nominal money supply.
E) dampens the effect of this disturbance on both domestic output and the real exchange rate.