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Ao9 Ao9
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8 years ago
In the monetary small open-economy model with a flexible exchange rate, an increase in the foreign price level decreases
A) the domestic price level and the nominal exchange rate, but has no effect on domestic output.
B) the nominal exchange rate, but has no effect on domestic output or the domestic price level.
C) the domestic price level, but has no effect on domestic output or the nominal exchange rate.
D) domestic output, but has no effect on the domestic price level or the nominal exchange rate.
Textbook 
Macroeconomics

Macroeconomics


Edition: 5th
Author:
Read 141 times
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GordisGordis
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8 years ago
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Ao9 Author
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8 years ago
Expert Upwards Arrow Smiling Face with Open Mouth
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8 years ago
You're welcome Wink Face Message me if you need any more assistance with your other questions.
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