In a Small Open Economy with a Flexible Exchange Rate,what

question 64

Multiple Choice

In a small open economy with a flexible exchange rate,what does a monetary injection by the Bank of Canada cause?

• A) It causes the dollar to appreciate.
• B) It causes net exports to fall.
• C) It causes an additional decrease in demand for Canadian-produced goods and services that is not realized in a closed economy.
• D) It causes a shift of the aggregate-demand curve farther to the right than it would in a closed economy.

---

Definitions:

Controllable Cost

Expenses that can be directly managed or influenced by a decision-maker within a specific time frame.

Line Authority

The power given to managers to make decisions and issue commands within their scope of responsibility, and to expect those commands to be followed by subordinate employees.

Financial Controller

A senior executive responsible for overseeing an organization's day-to-day financial operations, reporting, and compliance.

Self-Managed Teams

Groups of workers who are given the responsibility and autonomy to manage themselves and make decisions about their work.