What happens to U.S.exports when the money supply is increased?

Question

Quizplus · Accepted Answer

When the money supply is increased, it can lead to a decrease in the value of the dollar. This makes U.S. exports relatively cheaper to foreign buyers, increasing demand and thus increasing exports. Therefore, choice B is the correct answer. Tariffs are taxes on imports, which are not directly affected by an increase in the money supply. Prices may increase due to inflation, which could affect exports negatively. Quality is not directly affected by the money supply.

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