In the Short Run, a Permanent Increase in the Domestic

question 5

Multiple Choice

In the short run, a permanent increase in the domestic money supply

• A) has stronger effects on the exchange rate and output than an equal temporary increase.
• B) has stronger effects only on the exchange rate but not on output than an equal temporary increase.
• C) has weaker effects on the exchange rate and output than an equal temporary increase.
• D) has stronger effects on output, but lower effect on the exchange rate than an equal temporary increase.
• E) has weaker effects only on the exchange rate than an equal temporary increase.

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Definitions:

Synovial Membrane

A connective tissue that lines the inner surface of capsules of synovial joints and tendon sheaths, producing a fluid for lubrication.

Serous Membrane

A thin layer of tissue that lines certain internal cavities of the body, producing a serous fluid to lubricate these cavities.

Mucous Membrane

A layer of cells known for producing mucus, found lining various cavities in the body that are exposed to the external environment.

Internal Organs

Organs located inside the body, such as the heart, lungs, and liver, which perform various vital functions.