In the Monetary Small Open-Economy Model with a Fixed Exchange

question 35

Multiple Choice

In the monetary small open-economy model with a fixed exchange rate, the domestic

• A)central bank loses control over the price level.
• B)central bank loses control over the domestic stock of money.
• C)government loses control over the level of domestic government spending.
• D)government loses control over the level of domestic government spending and domestic taxes.
• E)government loses control over the level of domestic taxes.

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