Which of the following statements is true?
A) Expansionary fiscal and monetary policy both tend to increase the exchange rate of an economy.
B) Expansionary monetary policy tends to lower the exchange rate of an economy. The effects of expansionary fiscal policy are unclear.
C) Expansionary fiscal policy tends to increase the exchange rate of an economy. The effects of expansionary monetary policy are unclear.
D) The effects of both expansionary fiscal and monetary policy on the exchange rate of an economy are unclear.
Correct Answer:
Verified
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