Multiple Choice
For this question,assume that policy makers are pursuing a fixed exchange rate regime.Now suppose that an increase in stock market wealth causes an increase in consumption.Which of the following will tend to occur in a fixed exchange rate regime?
A) an increase in Y
B) an increase in the money supply
C) no change in the domestic interest rate
D) all of the above
Correct Answer:

Verified
Correct Answer:
Verified
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