Expansionary monetary policy enacted during a recession will cause the inflation rate to increase

Which of the following is TRUE of the current account balance?

A) Monetary expansion has no effect on the current account balance. B) Monetary expansion decreases the current account balance. C) Fiscal expansion increases the current account balance. D) Fiscal expansion has no effect on the current account balance. E) Monetary expansion increases the current account balance.

When interest rates fall in the United States (with the price level fixed), the value of the dollar ________, domestic goods become ________ expensive, and net exports ________

A) falls; less; fall B) falls; less; rise C) falls; more; fall D) rises; less; fall