Answer Happy

Which of the following claims concerning the importance
of effects that explain the slope of a small, open Asian economy’s
aggregate demand curve is correct?
a.
The exchange-rate effect is relatively longer because
exports and imports are a larger part of real GDP.
b.
The interest-rate effect is relatively small because
investment spending is not very responsive to interest rate
changes.
c.
The wealth effect is relatively large because money
holdings are a significant portion of most households’
wealth.
d.
None of the above is correct.