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In the monetary small open-economy model with a fixed exchange rate, an increase in the world real i

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In the monetary small open-economy model with a fixed exchange rate, an increase in the world real i

In the monetary small open-economy model with a fixed exchange rate, an increase in the world real interest rate
A) increases the domestic price level and has no effect on domestic output.
B) decreases domestic output and has no effect on the domestic price level.
C) decreases the domestic price level and has no effect on domestic output.
D) increases domestic output and has no effect on the domestic price level.

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Macroeconomics

Edition: 5^th

Author: Williamson

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Ao9 Author

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8 years ago

You're sharp, thanks!

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Gordis

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8 years ago

Please mark it solved once you get a chance.

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