Contractionary monetary policy
A. tends to lead to a depreciation of a nation's currency.
B. usually has no effect on a currency's exchange value.
C. tends to lead to an appreciation of the currencies of other nations.
D. tends to lead to an appreciation of a nation's currency.
Answer: D
Economics
You might also like to view...
Can the Federal Reserve achieve both low inflation and low levels of unemployment? Explain
What will be an ideal response?
Economics
A decrease in the discount rate:
a. increases reserve holdings of the commercial banks. b. leads to an increase in the interbank rate charged by commercial banks. c. lowers the cost of borrowing from the Fed. d. causes an increase in the federal funds rate. e. decreases the money supply.
Economics