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Roar Roar
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6 years ago
For this question, assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that a reduction in stock market wealth causes a decrease in consumption. Which of the following will tend to occur in a fixed exchange rate regime?
A) a reduction in Y
B) a reduction 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
Authors:
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vonCOLLINZOvonCOLLINZO
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6 years ago
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Roar Author
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#2
5 years ago
Thank you kind sir
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