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

Name: If the Fed lowers the federal funds rate so that the exchange rate falls, then imports _ and exports _.
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When the Fed lowers the federal funds rate, it typically leads to a depreciation of the domestic currency, making imports more expensive and exports cheaper for foreign buyers, thus decreasing imports and increasing exports.

If the Fed Lowers the Federal Funds Rate So That