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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 households decide to decrease consumption because of, for example, a reduction in consumer confidence. Given this information, we would expect which of the following to occur?
A) a reduction in the domestic interest rate
B) an increase in E
C) a reduction in E
D) a reduction in investment
E) none of the above
Textbook 
Macroeconomics

Macroeconomics


Edition: 6th
Authors:
Read 101 times
1 Reply
Macroeconomics, 6/E (Blanchard, Johnson)
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legendvpnlegendvpn
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7 years ago
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