For This Question,assume That Policy Makers Are Pursuing a Fixed

question 13

Multiple Choice

For this question,assume that policy makers are pursuing a fixed exchange rate regime.Now suppose that an increase in stock market wealth causes an increase in consumption.Which of the following will tend to occur in a fixed exchange rate regime?

• A)an increase in Y
• B)an increase in the money supply
• C)no change in the domestic interest rate
• D)all of the above