Macro homework question?

Posted on 2014-12-16 05:51:00 in Economics by DANILO

The presence of imports and exports in an open economy along with flexible exchange rates tends to

A) increase the effectiveness of a contractionary monetary policy, but reduce the effectiveness of an expansionary monetary policy.

B) increase the effectiveness of both expansionary and contractionary monetary
policies.

C) increase the effectiveness of an expansionary monetary policy, but reduce the effectiveness of a contractionary monetary policy.

D) reduce the effectiveness of both expansionary and contractionary monetary policies.

E) All of the above.

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