Multiple Choice
In a small open economy with a flexible exchange rate, a monetary injection causes which of the following?
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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