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Author Question: If the Fed increases the money supply to fight recession, a floating exchange rate will aid the Fed ... (Read 410 times)

cdr_15

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on: Apr 19, 2019

Question 1

Monetary policies are


◦ less effective when the exchange rate is flexible and the economy is open.
◦ more effective when the exchange rate is flexible and the economy is open.
◦ more effective when the exchange rate is flexible and the economy is closed.
◦ less effective when the exchange rate is fixed and the economy is open.

Question 2

If the Fed increases the money supply to fight recession, a floating exchange rate will aid the Fed in fighting recession because


◦ as the money supply is increased, the interest rate will decrease, and the price of U.S. exports will rise and the price of U.S. imports will fall.
◦ as the money supply is increased, the interest rate will decrease, and the price of U.S. exports will fall and the price of U.S. imports will rise.
◦ as the money supply is increased, the interest rate will decrease, and the price of both U.S. exports and U.S. imports will fall.
◦ as the money supply is increased, the interest rate will decrease, and the price of U.S. exports and U.S. imports will rise.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by cdr_15 on Apr 19, 2019

angrybirds13579

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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cdr_15

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Reply #2 on: Apr 19, 2019
Excellent


angrybirds13579

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Reply #3 on: Apr 19, 2019
Great! Please up vote :D


MCLPDX

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Reply #4 on: Mar 13, 2023
thank you


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