In the Macroeconomic Model of the Open Economy Developed in the Text

question 54

Multiple Choice

In the macroeconomic model of the open economy developed in the text, if the central bank increases the money supply, the price level will:

• A)rise, the real interest rate will rise, the nominal interest rate will rise, the real exchange rate will rise and the nominal exchange rate will rise
• B)rise, the real interest rate will be unaffected, the nominal interest rate will rise, the real exchange rate will be unaffected and the nominal exchange rate will rise
• C)rise, the real interest rate will be unaffected, the nominal interest rate will be unaffected, the real exchange rate will be unaffected and the nominal exchange rate will be unaffected
• D)rise, the real interest rate will be unaffected, the nominal interest rate will rise, the real exchange rate will be unaffected and the nominal exchange rate will fall

---

Definitions:

First-Degree

Refers to the mildest form of burn affecting only the outer layer of skin, causing redness and pain.

Slight Sunburn

Mild overexposure of the skin to ultraviolet light from the sun, causing redness and discomfort but usually healing without serious consequences.

Venous Thrombosis

The formation of a blood clot within a vein, which restricts blood flow and can lead to swelling and pain, potentially causing serious health problems if dislodged.

Increased Immunity

An enhanced state of the immune system's ability to fight off pathogens and diseases.