Which of the following would cause the exchange rate to appreciate in a small open economy with floating exchange rate? The money supply is decreased. Government spending is dec…

Question

asked Sep 8, 2021 16.1k views

1 Answer

← Prev Question Next Question →

Ask a Question

Punita · Answer 1 · 2021-09-11T20:58:55+0000

Answer:

The money supply is decreased.

Step-by-step explanation:

If the money supply is decreased, it will cause the exchange rate to appreciate in a small open economy with floating exchange rate and in the new short-run equilibrium income falls.

Which of the following would cause the exchange rate to appreciate in a small open economy with floating exchange rate? The money supply is decreased. Government spending is dec…

Please log in or register to add a comment.

Please log in or register to answer this question.

1 Answer

Please log in or register to add a comment.

No related questions found

Categories

Other Questions