The Aggregate Demand Curve for an Open Economy Under Fixed

question 10

Multiple Choice

The aggregate demand curve for an open economy under fixed exchange rates is

• A)less elastic than if the economy were closed
• B)more elastic than in the economy were closed
• C)more elastic than in the economy operated with flexible exchange rates
• D)all of the above

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, representing a distribution of the company's profits.

Annually

A term that pertains to an event or item that occurs once every year.

Anticipated Growth

Anticipated growth refers to the expected increase in size, value, or importance of something, such as a company's revenue or an economy's GDP, over a future period.

Estimated Dividend

The predicted amount that a company is expected to pay out in dividends to its shareholders in the near future.