To temporarily offset an appreciation in the dollar's exchange value,the Federal Reserve could ____ the U.S.money supply which would promote a (an) ____ in U.S.interest rates and a ____ in investment flows to the United States.
A) Increase,decrease,decrease
B) Increase,increase,decrease
C) Decrease,decrease,decrease
D) Decrease,increase,decrease

Question

Quizplus · Accepted Answer

The Federal Reserve can increase the U.S. money supply to temporarily offset an appreciation in the dollar's exchange value. This would promote a decrease in U.S. interest rates and a decrease in investment flows to the United States.

To Temporarily Offset an Appreciation in the Dollar's Exchange Value,the