The initial impact of _____ the money supply _____ the balance of payments.
A)expanding; worsens
B)expanding; improves
C)contracting; worsens
D)contracting; has no effect on

Question

Quizplus · Accepted Answer

Expanding the money supply typically leads to lower interest rates, which can increase domestic spending on foreign goods and decrease foreign investment in domestic assets, worsening the balance of payments.

The Initial Impact of _____ the Money Supply _____ the Balance

The Initial Impact of _ the Money Supply _ the Balance