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

question 32

Multiple Choice

In the monetary small open-economy model with a fixed exchange rate,a temporary decrease in domestic total factor productivity in the absence of any other shocks

• A) increases the current account surplus and increases the domestic money supply.
• B) increases the current account surplus and decreases the domestic money supply.
• C) increases the domestic money supply and decreases the current account surplus.
• D) decreases the domestic money supply and decreases the current account surplus.
• E) decreases the current account surplus and increases the price level.

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Definitions:

Self-concept

An individual's perception of themselves, encompassing beliefs about one's abilities, appearance, and personality traits, forming the basis of self-identity.

Ideal Self

A person's conception of how they would like to be, often serving as a motivator for self-improvement and goal setting.

Actual Self

The self-concept that is based on one's current attributes, beliefs, and behaviors, representing who one actually is at present.

Humanistic Psychologists

Psychologists that emphasize the study of the whole person, and believe that individuals seek to grow psychologically and continuously enhance themselves.