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smitch6 smitch6
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6 years ago
In the monetary small open-economy model with a flexible exchange rate, an increase in the world real interest rate
A) shifts aggregate demand to the right, increasing output and the real interest rate.
B) shifts aggregate demand to the left, increasing output and the real interest rate.
C) has no real effects.
D) shifts aggregate supply to the right, increasing output and decreasing the real interest rate.
E) shifts aggregate demand to the left, decreasing output and the real interest rate.
Textbook 
Macroeconomics, Canadian Edition

Macroeconomics, Canadian Edition


Edition: 5th
Author:
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karmarkarmar
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smitch6 Author
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6 years ago
Correct Slight Smile TY
sleinhi
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Yesterday
Smart ... Thanks!
jblazah
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2 hours ago
Helped a lot
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