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Could someone provide the answers to the following questions thank you in advance. A country operates under a flexible exchange rate system. When the central

Could someone provide the answers to the following questions thank you in advance.

  1. A country operates under a flexible exchange rate system. When the central bank lowers the interest rate during a recession, investment spending will ( Remain Unchanged/Decrease/Increase ) , the exchange rate value of the currency will( Remain Unchanged/Decrease/Increase ), and net exports will ( Remain Unchanged/Decrease/Increase ).

2. This change in monetary policy will cause:

A. the short-run aggregate supply curve to shift to the right.

B. the short-run aggregate supply curve to shift to the left.

C. the aggregate demand curve to shift to the right.

D. the aggregate demand curve to shift to the left.

3. If the exchange rate was fixed instead, then:

A. the effects would be the same as under the floating exchange rate.

B. the effects would all be opposite of those that occured under the floating exchange rate.

C. the central bank would not be able to use monetary policy to affect economic activity.

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