Multiple Choice
In a small open economy with a flexible exchange rate, what does a monetary injection cause?
A) It causes the dollar to appreciate.
B) It causes net exports to decline.
C) It causes an additional decrease in demand for Canadian-produced goods that is not realized in a closed economy.
D) It causes a shift of the aggregate demand curve farther to the right than in a closed economy.
Correct Answer:
Verified
Correct Answer:
Verified
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