Author Question: In an open economy under flexible exchange rates and represented by the IS-LM-IP model, a reduction ... (Read 64 times)

aabwk4 · **on:** Jun 30, 2018

In an open economy under flexible exchange rates and represented by the IS-LM-IP model, a reduction in government spending will cause a reduction in which of the following?

A) net exports
B) the exchange rate, E
C) exports
D) all of the above
E) none of the above

Question 2

When using a logarithmic scale to plot output per capita over time, an upward-sloping curve that becomes increasingly steep indicates

A) output per capita is not changing.
B) output per capita is growing by a constant amount each year.
C) output per capita is growing by a constant percentage each year.
D) output per capita is growing by an increasing percentage each year.
E) output per capita is not defined.