Author Question: Contractionary monetary policy in a flexible exchange rate regime will cause A) a shift of the IP ... (Read 170 times)

ashley · **on:** Jun 30, 2018

Contractionary monetary policy in a flexible exchange rate regime will cause

A) a shift of the IP curve.
B) a depreciation of the domestic currency.
C) an increase in E.
D) no change in E.

Question 2

Decreasing returns to capital (K) implies that a 4 increase in K will cause

A) a reduction in output per worker (Y/N).
B) a reduction in K/N.
C) Y to increase by exactly 4.
D) Y to increase by less than 4.
E) no change in Y/N.