Under Fixed Exchange Rate,in General Which One of the Following

question 44

Multiple Choice

Under fixed exchange rate,in general which one of the following statements is the MOST accurate?

• A)The following condition should hold for domestic money market equilibrium: M^s/P = L(R ,
• Y).
• B)The following condition should hold for domestic money market equilibrium: M^d/P = L(R ,
• Y).
• C)The following condition should hold for domestic money market equilibrium: M^s = L(R ,
• Y).
• D)The following condition should hold for domestic money market equilibrium: P = L(R ,
• Y).
• E)The following condition should hold for domestic money market equilibrium: R*M^d/P = L(

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