An expansionary monetary policy in Canada should
A)decrease the foreign currency price of Canadian exports.
B)cause the dollar to appreciate.
C)decrease the dollar price of imports.
D)decrease net exports.
E)raise Canadian interest rates.

Question

Quizplus · Accepted Answer

An expansionary monetary policy typically lowers interest rates, leading to a depreciation of the domestic currency, which decreases the foreign currency price of exports, making them cheaper for foreign buyers.

An Expansionary Monetary Policy in Canada Should