Exhibit: IS*-LM* a Small Open Economy with a Floating

question 64

Multiple Choice

Exhibit: IS*-LM* A small open economy with a floating exchange rate is initially at equilibrium A with equilibrium exchange rate e₂, and equilibrium output Y₁. If there is a monetary expansion to the new equilibrium will be at _____, holding everything else constant.

• A)A
• B)B
• C)C

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Definitions:

Neodissociation Theory

A theory of hypnosis based on the belief that hypnosis is a state of dissociated control of executive functions.

Sociocognitive Theory

A theory that emphasizes the role of cognitive processes in understanding social behavior, considering how people interpret, analyze, remember, and use information about the social world.

Consciousness

The faculty of recognizing and analyzing one's existence, sensory perceptions, mental activities, environment, and events in one's life.

Hypnosis

A psychological therapy involving focused attention, reduced peripheral awareness, and an enhanced capacity to respond to suggestion.