Monetary Injection in Closed and Open Economy

Monetary Injection and AD

A monetary injection is when the central bank increases the money supply.

When the money supply increases, the interest rates ________. This makes it ________ to take loans so Consumption (C) and Investment (I) ________
This causes Aggregate ________ to shift to the ________

In a small open economy with a flexible exchange rate, a monetary injection by the central bank that lowers interest rates will make domestic assets (like bonds) ________ attractive. This causes the dollar to ________ under a flexible exchange rate.
This causes net exports to ________
A monetary injection in an open economy shifts the aggregate demand curve ________ to the right than it does in a closed economy.
A fixed exchange rate is when the central bank does not allow the exchange rate to change between two countries.
If the central bank tries monetary injection (higher money supply and lower interest rates) with a fixed exchange rate, when the domestic interest rate falls below the world interest rate, everyone would try to buy ________ foreign assets (bonds).
To do this they would have to exchange their dollars to foreign currency at the central bank which would cause the money supply to ________ back to the original level
For this reason, monetary injection and monetary policy are effective with ________ exchange rates, but not ________ exchange rates.