An expansionary monetary policy causes interest rates to _____________________,and eventually United States net exports ____________ causing the AD curve to shift to the ___________________.

Question

Quizplus · Accepted Answer

An expansionary monetary policy lowers interest rates, which can lead to a depreciation of the currency, making exports cheaper and imports more expensive. This can increase net exports, shifting the aggregate demand (AD) curve to the right.

An Expansionary Monetary Policy Causes Interest Rates to _____________________,And Eventually