A.Y – (C-I+G).B.Y + (C+I+G).C.Y – (C+I+G).D.Y – (C+I-G).E.Y – (C+I+G) = -CA, (i.e., minus the CA).Answer: C

The current account is equal toA.S(p)-I + T-G                  B.C+I+G+X               C.I+X              D.T-GAnswer: A

In the short run, a permanent increase in the domestic money supplyA.has stronger effects on the exchange rate and output than an equal temporary increase.B.has stronger effects on...