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Munze Munze
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7 years ago
For this question, assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that an increase in stock market wealth causes an increase in consumption. Which of the following will tend to occur in a fixed exchange rate regime?
A) an increase in Y
B) an increase in the money supply
C) no change in the domestic interest rate
D) all of the above
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Macroeconomics

Macroeconomics


Edition: 6th
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Macroeconomics, 6/E (Blanchard, Johnson)
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legendvpnlegendvpn
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Munze Author
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7 years ago
Thanks so much Smiling Face with Open Mouth Slight Smile
Macroeconomics, 6/E (Blanchard, Johnson)
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