How does contractionary monetary policy affect net exports in the short run?
A) Contractionary monetary policy reduces exports and increases imports.
B) Contractionary monetary policy increases exports and reduces imports.
C) Contractionary monetary policy increases exports and increases imports.
D) Contractionary monetary policy reduces exports and reduces imports.
A
You might also like to view...
The marginal rate of substitution is
A) the rate at which the consumer will give up one good to get an additional unit of another good while remaining on the same indifference curve. B) the rate at which utility increases as the consumer increases purchases of a good, holding purchases of the other good constant. C) the rate at which a consumer will exchange a good for income holding prices constant. D) None of the above answers is correct.
What was the an effect of the Sherman Antitrust Act?
(A) John D. Rockefeller formed the Standard Oil Trust as a protected natural monopoly. (B) The federal government won the power to prevent monopolies and mergers that interfered with trade between states. (C) Microsoft required personal computer manufacturers to include its web browser with the Microsoft Windows operating system. (D) The federal government repealed regulations that controlled the airline and trucking industries.