Due to Macroeconomics Interdependence Between Large Countries, the Effect of a Permanent

question 135

Multiple Choice

Due to macroeconomics interdependence between large countries, the effect of a permanent monetary policy expansion by Home is as follows: Home output

• A) rises, Home's currency depreciates, and Foreign output may rise or fall.
• B) falls, Home's currency depreciates, and Foreign output may rise or fall.
• C) rises, Home's currency appreciates, and Foreign output may rise or fall.
• D) rises, Home's currency depreciates, and Foreign output rises.
• E) falls, Home's currency appreciates, and Foreign output may rise or fall.

---

Definitions:

Fibers

Long, thin strands of material, either natural or man-made, that can be woven into textiles or used in other manufacturing processes.

Liquid Connective Tissue

Blood; a specialized body fluid with cells suspended in a liquid matrix (plasma), involved in transporting nutrients, oxygen, waste products, and other substances throughout the body.

Blood

A vital liquid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away from those same cells.

Lymph

A clear fluid that circulates in the lymphatic system, carrying white blood cells and removing bacteria and other waste products.