Author Question: In an open economy under flexible exchange rates, expansionary monetary policy that results in an ... (Read 68 times)

ericka1 · **on:** Jun 30, 2018

In an open economy under flexible exchange rates, expansionary monetary policy that results in an increase in the money supply will always cause

A) an increase in output.
B) an increase in exports.
C) a reduction in the exchange rate, E.
D) all of the above
E) only A and C

Question 2

Which of the following must occur to sustain economic growth in the long run?

A) technological progress
B) capital accumulation
C) a higher saving rate
D) all of the above