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

question 4

Multiple Choice

In the monetary small open-economy model with a flexible exchange rate,an increase in the domestic money supply increases

• A) domestic output, but has no effect on the domestic price level or the nominal exchange rate.
• B) the domestic price level, but has no effect on domestic output or the nominal exchange rate.
• C) the nominal exchange rate, but has no effect on domestic output or the domestic price level.
• D) the domestic price level and the nominal exchange rate, but has no effect on domestic output.
• E) the domestic price level and domestic output, but has no effect on the nominal exchange rate.

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Attention-Deficit/Hyperactivity Disorder

A neurodevelopmental disorder characterized by a pattern of inattention and/or hyperactivity-impulsivity that interferes with functioning or development.

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A mental disorder characterized by persistent disturbances or dysfunctions in behavior, thoughts, or emotions that cause significant distress or impairment.

Excitability

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Generalized Anxiety Disorder

A psychological disorder characterized by excessive, uncontrollable, and often irrational worry about everyday things.