With fixed exchange rates, the adjustment to changes in international monetary conditions comes through:

Select one:

a. Exchange rate changes.

b. Exchange rate changes and international money flows.

c. International money flows.

d. Imposing capital controls

e. None of the above.

With flexible exchange rates, perfect asset substitutability, and perfect capital mobility, expansionary monetary policy will cause:

Select one:

a. Income to rise, interest rates to fall, and the domestic currency to depreciate.

b. Income to fall, interest rates to rise, and the domestic currency to appreciate.

c. Income to rise, interest rates to remain unchanged, and the domestic currency to appreciate.

d. Income to rise, interest rates to remain unchanged, and the domestic currency to depreciate.

e. None of the above