In a Small Open Economy with Perfect Capital Mobility, If

question 33

Multiple Choice

In a small open economy with perfect capital mobility, if the Bank of Canada chooses to fix the value of the Canadian dollar, what will a contractionary monetary policy do?

• A) It will have no effect.
• B) It will shift the AD curve to the left.
• C) It will shift the AD curve to the right.
• D) It will shift both the AD curve and the short-run AS curve to the left.

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Definitions:

Pipelining

A technique in computer architecture where multiple instructions are overlapped in execution to improve the performance of the execution of sequences of instructions.

Multiple Monitors

The use of more than one display screen at a time to expand visual workspace, often used to improve multitasking or enhance gaming and multimedia experiences.

System Clock

This internal clock is actually a special crystal that acts like a metronome, keeping a steady beat and controlling follows: One computer establishes a connection to the Internet service provider (ISP) and announces it has e-mail to send, the ISP server responds that it’s ready to receive, and the computer acknowledges the ready state of the server and begins to transmit the e-mail.