If the Federal Reserve pursues an expansionary monetary policy

Question

Quizplus · Accepted Answer

Expansionary monetary policy involves lowering interest rates and increasing the money supply, which can increase demand for U.S. goods and services, leading to an increase in exports. This would not necessarily lead to an increase in the value of the dollar or an increase in imports. While the increase in money supply could lead to higher aggregate supply, it is not guaranteed and would likely depend on other factors as well.

If the Federal Reserve Pursues an Expansionary Monetary Policy