In an open economy, a contractionary monetary policy:
A) is very effective in changing real GDP.
B) is not effective in changing real GDP.
C) is not effective in changing the exchange rate.
D) is not effective in changing capital flows between countries.
E) causes capital outflows.

Question

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The Answer of In an open economy, a contractionary monetary policy:
A) is very effective in changing real GDP.
B) is not effective in changing real GDP.
C) is not effective in changing the exchange rate.
D) is not effective in changing capital flows between countries.
E) causes capital outflows.

In an Open Economy, a Contractionary Monetary Policy