Under a floating exchange rate regime, following an expansion in the money supply, the change in the value of domestic currency is most likely to:
A)increase demand for imports.
B)increase demand for exports.
C)lower the real product.
D)initiate foreign capital inflow.

Question

Quizplus · Accepted Answer

The Answer of Under a floating exchange rate regime, following an expansion in the money supply, the change in the value of domestic currency is most likely to:
A)increase demand for imports.
B)increase demand for exports.
C)lower the real product.
D)initiate foreign capital inflow.

Under a Floating Exchange Rate Regime, Following an Expansion in the Money