If the Fed raises the federal funds rate so that the exchange rate rises, then imports and exports _.

Name: If the Fed raises the federal funds rate so that the exchange rate rises, then imports and exports _.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

When the Fed raises the federal funds rate, it often leads to a stronger domestic currency, making imports cheaper and exports more expensive, thus increasing imports and decreasing exports.

If the Fed Raises the Federal Funds Rate So That