The Introduction of Automatic Teller Machines, Which Reduces the Demand

question 70

Multiple Choice

The introduction of automatic teller machines, which reduces the demand for money, will, according to the Mundell-Fleming model with fixed exchange rates, lead to:

• A) a rise in income and net exports.
• B) no change in income or net exports.
• C) no change in income but a rise in net exports.
• D) a rise in income but no change in net exports.

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Definitions:

Scientific Notation

A way of expressing numbers that are too big or too small to be conveniently written in decimal form, using powers of 10.

Position Function

A mathematical function that describes the position of an object as a function of time, often used in physics to study motion.

Initial Velocity

The speed of an object at the moment it begins its motion.

Positive Integers

Natural numbers greater than zero (1, 2, 3, ...).