As a result of contractionary monetary policy
A) interest rates fall, the dollar depreciates, and domestic goods become cheaper, thereby reducing net exports.
B) interest rates rise, the dollar appreciates, and domestic goods become more expensive, thereby reducing net exports.
C) interest rates rise, the dollar appreciates, and domestic goods become cheaper, thereby reducing net exports.
D) interest rates rise, the dollar appreciates, and domestic goods become cheaper, thereby increasing net exports.
Correct Answer:
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Q187: An expansionary monetary policy results in lower
Q188: An appreciation of the U.S. dollar
A) makes
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Q190: The net-export effect of expansionary monetary policy
Q191: A contractionary monetary policy causes
A) higher interest
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