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
Effects of growth rate on development.
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