A permanent decrease in a country's money supply will cause in real income and real interest rate but in exchange rate in the long run Select one: a. no change, a proportional increase b. no change, a proportional decrease O ca proportional decrease, no change O d.a proportional increase, no change

A permanent decrease in a country's money supply will cause in real income and real interest rate but in exchange rate in the long run Select one: a. no change, a proportional increase b. no change, a proportional decrease O ca proportional decrease, no change O d.a proportional increase, no change

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 7SCQ: How would a contractionary monetary policy affect the exchange rate, net exports, aggregate demand,...

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Question

A permanent decrease in a country's money supply will causein real income and real interest rate but
in exchange
rate in the long run
Select one:
a. no change, a proportional increase
b. no change, a proportional decrease
ca proportional decrease, no change
d. a proportional increase, no change

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