Statement I: Easy money tends to make our exports cheaper and our imports more expensive.
Statement II: The Fed was able to help end the recessions of 1980 and 1981 by relaxing credit and driving down interest rates.

Question

Quizplus · Accepted Answer

Easy money, which involves lowering interest rates, can lead to a weaker currency, making exports cheaper and imports more expensive. The Fed's actions in the early 1980s to lower interest rates helped stimulate the economy, ending the recessions.

Statement I: Easy Money Tends to Make Our Exports Cheaper