If the Fed lowers the federal funds rate so that the exchange rate falls, then imports ________ and exports ________.

Name: If the Fed lowers the federal funds rate so that the exchange rate falls, then imports ________ and exports ________.
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When the Fed lowers the federal funds rate, it typically leads to a depreciation of the domestic currency, making imports more expensive (thus decreasing) and exports cheaper for foreign buyers (thus increasing).

If the Fed Lowers the Federal Funds Rate So That