ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question

If the Fed reduces money supply, then in the short run:
a. interest rate rises but exchange rate falls.
b. exchange rate rises and net exports fall.
c. interest rate falls, but the level of investment does not rise.
d. exchange rate falls, but net exports do not rise

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