Multiple Choice
In the New Keynesian open economy model,if the exchange rate is fixed
A) fiscal policy and monetary policy are powerless.
B) fiscal policy is an effective stabilization tool.
C) a change in current total factor productivity increases output.
D) monetary policy is an effective stabilization tool.
Correct Answer:
Verified
Correct Answer:
Verified
Q29: The nominal exchange rate is the<br>A) domestic
Q30: In the New Keynesian open economy model,suppose
Q31: Under a flexible exchange rate,an increase in
Q32: To maintain a fixed exchange rate,authorities<br>A) make
Q33: In the New Keynesian open economy model<br>A)
Q35: In response to a temporary change in
Q36: The supply of euros is managed by<br>A)
Q37: In the monetary small open-economy model,a flexible
Q38: A capital inflow occurs when a<br>A) domestic
Q39: A hard peg may be achieved by