In a Small Open Economy with a Fixed Exchange Rate

question 47

Multiple Choice

In a small open economy with a fixed exchange rate, if the government imposes an import quota, then net exports:

• A) decrease but the money supply falls and income falls.
• B) increase, the money supply increases, and income increases.
• C) are unchanged but the money supply falls and income falls.
• D) are unchanged, the money supply is unchanged, and income is unchanged.

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Definitions:

Assigned Leader

A person who is officially designated to hold a leadership position within an organization, often based on authority and responsibility given by the organization's hierarchy.

Coercive Leader

A leadership style characterized by the use of threats, punishment, and control to influence the behavior of followers.

Trait Viewpoint

A perspective in leadership theory that suggests certain inherent personality traits and characteristics can make an individual a good leader.

Process

A series of actions or steps taken in order to achieve a particular end.