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Author Question: In the New Keynesian open economy model, if the exchange rate is fixed A) fiscal policy and ... (Read 41 times)

dejastew

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on: Jun 30, 2018
In the New Keynesian open economy model, if the exchange rate is fixed
 
  A) fiscal policy and monetary policy are powerless.
  B) fiscal policy is an effective stabilization tool.
  C) a change in current total factor productivity increases output.
  D) monetary policy is an effective stabilization tool.

Question 2

An increase in the general level of prices will tend to cause, other things the same ________.
 
  A) an increase in the real value of assets
  B) an increase in the real value of liabilities
  C) no change in the real value of liabilities
  D) a decrease in the real value of liabilities


brittrenee

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

D


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