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Ao9 Ao9
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Posts: 1908
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9 years ago
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.
Textbook 
Macroeconomics

Macroeconomics


Edition: 5th
Author:
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GordisGordis
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#1
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Posts: 1906
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9 years ago
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Ao9 Author
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#2
9 years ago
You're sharp, thanks!
wrote...
#3
9 years ago
Please mark it solved once you get a chance.
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