Which of the following is an example of the reasons that other countries have accused the U.S.of currency manipulation?
A) The Federal Reserve increases the money supply to grow the U.S. economy.
B) The Federal Reserve uses contractionary monetary policy to fight inflation.
C) The Federal Reserve uses expansionary monetary policy to fight inflation.
D) The Federal Reserve shrinks the money supply to grow the U.S. economy.

Question

Quizplus · Accepted Answer

Other countries accuse the U.S. of currency manipulation because the Federal Reserve increases the money supply to grow the U.S. economy, which can lead to a depreciation of the U.S. dollar and a competitive advantage in international trade.

Which of the Following Is an Example of the Reasons