In a small open economy, a monetary injection causes money supply to__ and interest rate to__.

A. decrease, decrease

B. increase, decrease

C. increase, increase

D. decrease, increase

In a small open economy with a flexible exchange rate, a monetary injection will cause the Canadian to__ because the supply of Canadian dollars in the foreign currency exchange market___.

A. depreciate, increases

B. appreciate, increases

C. depreciate, decreases

D. appreciate, decreases

In a small open economy, a monetary injection causes the real exchange rate to__and exports to_.

A. decrease, decrease

B. increase, increase

C. increase, decrease

D. decrease, increase

In a small open economy with a flexible exchange rate, a monetary injection will cause exports to _ and the aggregate demand curve to__.

A. decrease, decrease

B. decrease, increase

C. increase, decrease

D. increase, increase

In a small open economy with a flexible exchange rate, a monetary injection will cause the aggregate demand curve to__, prices to __. output to__. A. increase, increase, increase

B. increase, decrease, increase

C. decrease, increase, decrease

D. decrease, decrease, decrease

In a small open economy with a flexible exchange rate, a monetary injection will cause prices to__ and money demand to_.

A. decrease, decrease

B. increase, decrease

C. increase, increase

D. decrease, increase