An expansionary monetary policy in the United States should
A)decrease the foreign currency price of U.S.exports.
B)cause the dollar to appreciate.
C)decrease the dollar price of imports.
D)decrease net exports.

Question

Quizplus · Accepted Answer

An expansionary monetary policy typically involves lowering interest rates or increasing the money supply, which tends to weaken the domestic currency (in this case, the U.S. dollar) relative to foreign currencies. This makes U.S. exports cheaper for foreign buyers, effectively decreasing the foreign currency price of U.S. exports.

An Expansionary Monetary Policy in the United States Should