17. The MABP emphasizes money demand and money supply as determinants of: The balance of payments under the fixed exchange rate. The balance of payments under the floating exchange rate. Exchange rate movements Capital flows a. b. c. d. 18. The MAER emphasizes money demand and money supply as determinants of a. The balance of payments under the fixed exchange rate. b. The balance of payments under the floating ekchange rate. c. Exchange rate movements d. Capital flows 19. Suppose the U.S. income grows by 4 percent. Under the MABR, which of the following percentage changes could offset this growth? a. International reserves increase by 2 percent and foreign inflation rises by 2 percent b. International reserves increase by 2 percent and foreign inflation falls by 2 percent c. International reserves decrease by 2 percent and foreign inflation rises by 2 percent d. International reserves decrease by 2 percent and foreign inflation falls by 2 percent 20 Assume floating exchange rates. Suppose there are a 5% growth in US output and the Fed increases in US money supply by 5%. Then, which of the following will offset these changes? a. 10% increase in exchange rate. b, 10% decrease in exchange rate. c, 10% increase in the foreign inflation. d. The two changes offset each other