If the Fed adopts a contractionary monetary policy, what sequence of events will happen?
A) U.S. interest rates will fall, the value of the dollar will fall, and U.S. net exports will fall
B) U.S. interest rates will rise, the value of the dollar will rise, and U.S. net exports will fall
C) U.S. interest rates will rise, the value of the dollar will rise, and U.S. net exports will rise
D) U.S. interest rates will fall, the value of the dollar will fall, and U.S. net exports will rise
Correct Answer:
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