What effect does an expansionary monetary policy in the U.S. have on the foreign trade sector?

Question

Quizplus · Accepted Answer

An expansionary monetary policy typically leads to a lower value of the domestic currency (in this case, the dollar) because interest rates decrease, making investments in that currency less attractive. A lower dollar value makes U.S. goods cheaper for foreigners, increasing exports, and foreign goods more expensive for Americans, decreasing imports.

What Effect Does an Expansionary Monetary Policy in the U