Contractionary monetary policy tends to:
A. raise U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar.
B. raise U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar.
C. lower U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar.
D. lower U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar.
Answer: C
You might also like to view...
Tariffs and quotas are essentially identical in their effects
Indicate whether the statement is true or false
Suppose there are profit maximizing, competitive buyers and sellers of labor in an industry, and the amount of capital is fixed for each firm. Explain under what condition the output price will equal the wage rate
What will be an ideal response?