In the monetary small open-economy model with a flexible exchange rate, an increase in the domestic

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In the monetary small open-economy model with a flexible exchange rate, an increase in the domestic

In the monetary small open-economy model with a flexible exchange rate, an increase in the domestic price level has which impact on domestic money demand?
A) It increases it.
B) It decreases it.
C) It has no impact.
D) It depends.

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Macroeconomics

Edition: 5^th

Author: Williamson

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