In the New Keynesian Open Economy Model,suppose the Exchange Rate

question 30

Multiple Choice

In the New Keynesian open economy model,suppose the exchange rate is flexible and there is a decline in total factor productivity

• A) expansionary fiscal policy is necessary.
• B) contractionary monetary policy is necessary.
• C) expansionary monetary policy is necessary.
• D) no policy intervention is necessary.

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Definitions:

Simp

A slang term often used disparagingly to describe someone who exhibits excessive sympathy or attention towards another person, typically someone they are romantically interested in, without receiving any affection in return.

Conj

A shortened form for "Conjunction," indicating a grammatical or logical connector that joins two or more elements in discourse.

Simp

A slang term often used to describe someone who is overly subservient to someone else, typically in a way that is self-deprecating or in pursuit of their affection, sometimes without receiving anything in return.

Add

In mathematics, it refers to the operation of combining two or more quantities to achieve a sum.