4 In a flexible exchange rate regime, a decrease in consumer confidence will causethe IS curve to shift to the left.a movemet along the 1S curve.the IS curve to shift to the right.neither a shift of nor movement along the IS curve.Question 55 (How does expansionary monetary policy, affect the-LM-UIP diagram in a flexible exchange rate regime?O The IS curve shifts to the right; the LM curve shifts down, the Interest Parity curve does not shift.O The IS curve remains unchanged; the LM curve shifts down; the Interest Parity curve shifts to the left.The IS curve remains unchanged, the LM curve shifts down; the Interest Parity curve remainsunchanged.O The IS curve shifts to the 1ight, the LM curve shifts up; the Interest Parity curve does not shift.The IS curve shifts to the right; the LM curve shits down; the Interest Parity curve shifts to the left.

IS curve represents the goods market equilibrium where I=S. it represents the all sets of interest…

In a flexible exchange rate regime, a decrease in consumer confidence will cause O the IS curve to shift to the left. Oa movement along the IS curve. the IS curve to shift to the right. neither a shift of nor movement along the IS curve.

In a flexible exchange rate regime, a decrease in consumer confidence will cause O the IS curve to shift to the left. Oa movement along the IS curve. the IS curve to shift to the right. neither a shift of nor movement along the IS curve.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

In a flexible exchange rate regime, a decrease in consumer confidence will cause
the IS curve to shift to the left.
a movemet along the 1S curve.
the IS curve to shift to the right.
neither a shift of nor movement along the IS curve.
Question 55 (
How does expansionary monetary policy, affect the
-LM-UIP diagram in a flexible exchange rate regime?
O The IS curve shifts to the right; the LM curve shifts down, the Interest Parity curve does not shift.
O The IS curve remains unchanged; the LM curve shifts down; the Interest Parity curve shifts to the left.
The IS curve remains unchanged, the LM curve shifts down; the Interest Parity curve remains
unchanged.
O The IS curve shifts to the 1ight, the LM curve shifts up; the Interest Parity curve does not shift.
The IS curve shifts to the right; the LM curve shits down; the Interest Parity curve shifts to the left.

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