Many economists argue that the sharp reduction in U.S.net exports in the mid 1980s was due to
A)expansionary U.S. monetary policy.
B)contractionary U.S. monetary policy.
C)expansionary U.S. fiscal policy.
D)contractionary U.S. fiscal policy.

Question

Quizplus · Accepted Answer

The sharp reduction in U.S. net exports in the mid-1980s is often attributed to expansionary U.S. fiscal policy, which led to higher interest rates, a stronger dollar, and thus made U.S. exports more expensive and imports cheaper.

Many Economists Argue That the Sharp Reduction in U