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

question 42

Multiple Choice

In the monetary small open-economy model with a fixed exchange rate,an increase in the foreign price level

• A) shifts the money demand curve to the right.
• B) shifts the money demand curve to the left.
• C) shifts the money supply curve to the right.
• D) shifts aggregate demand to the right.
• E) shifts aggregate demand to the left.

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