In a flexible exchange rate regime, a reduction in the expected ...

[vinney12]

In a flexible exchange rate regime, a reduction in the expected future exchange rate will cause
 
  A) the IP curve to shift to the left/up.
  B) the IP curve to shift to the right/down.
  C) a movement along the IP curve.
  D) neither a shift nor movement along the IP curve.

Question 2

Which of the following will not cause an increase in aggregate output (Y) in the long run?
 
  A) an increase in N
  B) an increase in K
  C) an increase in technology
  D) a reduction in the saving rate
  E) none of the above

[janieazgirl]

Answer to Question 1

A

Answer to Question 2

D

[vinney12]

Thank you

[janieazgirl]

Happy to help you