Which of the following is the last step in the sequence?
A)A strong dollar relative to foreign currencies hurts U.S.exporters
B)As the money supply increases,interest rates fall in the short run
C)The value of the dollar declines
D)Low U.S.interest rates makes the dollar less attractive to foreign investors
E)The Fed chooses an expansionary monetary policy

Question

Quizplus · Accepted Answer

The sequence starts with the effect of a strong dollar on U.S. exporters, then moves to the short-term effects of an increase in the money supply, followed by the long-term effects of low U.S. interest rates on foreign investment. The last step in the sequence is the decline in the value of the dollar, which is caused by these factors and others such as trade deficits and inflation. The choice C accurately describes the last step in the sequence.

Which of the Following Is the Last Step in the Sequence