DSE 2006

Posted by Rain Man on Jun 04, 2012; 5:16pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2006-tp7577468.html

Q . An increase in foreign income _________ the equilibrium output of a small open economy with uncovered interest parity and flexibe exchange rates.
a. increases
b.decreases
c. leaves unchanged
d first increases then decreases

please explain..

thanks