If the Fed pursues an expansionary monetary policy:
A) the dollar will rise.
B) U.S.imports from other countries will rise.
C) U.S.exports to other countries will rise.
D) aggregate supply will increase.

Question

Quizplus · Accepted Answer

An expansionary monetary policy typically involves lowering interest rates and increasing the money supply, which can lead to a devaluation of the currency. This can make American goods cheaper for foreign buyers, which can increase demand for U.S. exports. Therefore, U.S.exports to other countries will likely rise.

If the Fed Pursues an Expansionary Monetary Policy