What Macroeconomic Measures Are Considered Fixed in Our Open-Economy Model

question 60

Multiple Choice

What macroeconomic measures are considered fixed in our open-economy model?

• A) the exchange rate, GDP, and the world real interest rate
• B) the exchange rate, world real interest rate, and the inflation rate
• C) net capital outflow, the inflation rate, and the price level
• D) GDP, the price level, and the world real interest rate

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Definitions:

Gastric Juice

A acidic fluid secreted by the stomach glands and active in promoting digestion.

Gastric Secretion

The process of producing and releasing fluids, including hydrochloric acid and digestive enzymes, by the stomach's lining.

Muscularis

A layer of muscle in the walls of hollow organs, such as the gastrointestinal tract, responsible for movement of the organ's contents.

Rugae

Folds or ridges found on internal organ surfaces to increase surface area for secretion and absorption.