Multiple Choice
What is the main reason why monetary policy has a stronger effect in an open economy than in a closed economy?
A) Changes in the price level affect net exports.
B) Changes in the price level affect exchange rates.
C) Changes in exchange rates affect output.
D) Changes in the interest rate affect exchange rates which,in turn,affect net exports.
E) Changes in exchange rates affect the interest rate which,in turn,affects net exports.
Correct Answer:
Verified
Correct Answer:
Verified
Q41: If there is an excess supply of
Q42: What does the supply curve for Mexican
Q43: In the hard-landing scenario the ability of
Q44: If the dollar-peso exchange rate is 0.01
Q45: If the dollars per euro exchange rate
Q47: The most dramatic and rapid increases and
Q48: The 2005-2008 Chinese policy with respect to
Q49: Which of the following is not among
Q50: A decrease in the price of a
Q51: If we know that the exchange rate