Expansionary monetary policy in a flexible exchange rate regime ...

[washai]

Expansionary monetary policy in a flexible exchange rate regime will cause
 
  A) a shift of the IP curve.
  B) an appreciation of the domestic currency.
  C) a reduction in E.
  D) no change in E.

Question 2

For this question, assume that the saving rate decreases. We know that this decrease in the saving rate will cause which of the following?
 
  A) a temporary decrease in the level of output per capita
  B) no permanent change in the level of output per capita
  C) a temporary decrease in the rate of growth of output per capita
  D) a permanently lower rate of growth of output per capita
  E) none of the above

[carlsona147]

Answer to Question 1

C

Answer to Question 2

C