In response to a temporary change in total factor productivity, ...

[tfester]

In response to a temporary change in total factor productivity, the adoption of capital controls under a fixed exchange rate
 
  A) amplifies the effect of this disturbance on both domestic output and the domestic nominal money supply.
  B) amplifies the effect of this disturbance on domestic output and dampens the effect on the domestic nominal money supply.
  C) dampens the effect of this disturbance on domestic output and amplifies the effect on domestic nominal money supply.
  D) dampens the effect of this disturbance on both domestic output and the domestic nominal money supply.

Question 2

Open Market operations consist mainly of ________.
 
  A) the government buying and selling private securities in the open market
  B) the Fed buying and selling government securities in the open market
  C) the government selling its own securities in the open market
  D) the Fed setting rates for securities traded in the open market
  E) none of the above

[guyanai]

Answer to Question 1

D

Answer to Question 2

B

[tfester]

Excellent

[Jossy]

TYSM