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.
B
You might also like to view...
The double taxation of capital gains can be justified _____
a. on the ability-to-pay principle b. on efficiency grounds c. on the grounds that government needs more revenue d. on the benefit principle
The most important source of state tax revenue is the _____ tax.
A. property B. income C. excise D. sales