In an Open Economy,monetary Policy Has

question 209

Multiple Choice

In an open economy,monetary policy has

• A) a smaller impact on aggregate demand compared to a closed economy.
• B) the same impact on aggregate demand compared to a closed economy.
• C) a larger impact on aggregate demand compared to a closed economy.
• D) no impact on aggregated demand.

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Definitions:

Imply

To suggest or express something indirectly or covertly, leaving the full meaning to be inferred by the audience.

Tautology

A statement that is necessarily true because of the meanings of the words.

Truth Table

A mathematical table used in logic to determine whether a compound statement is true or false, based on the truth values of its components.

Contingent Statement

In the Logic of Statements means a grammatically correct expression that turns out to be true under at least one possible assignment of truth values to its component simple statements and false under another possible assignment of truth values to its component simple statements.