An expansionary monetary policy results in lower interest rates, which in turn
A. increases the foreign demand for U.S. financial instruments, lowering the international price of the dollar and decreasing net exports.
B. reduces the foreign demand for U.S. financial instruments and reduce net exports.
C. increases foreign demand for U.S. financial instruments, raising the international price of the dollar and reducing net exports.
D. reduces the international price of the dollar and increases net exports.
Answer: D
You might also like to view...
As the manager of good A, which of the following would be of greatest concern (based on the regression results above)?
A) None of the factors below would be of concern. B) an impending recession C) pressure on you by your salespersons to lower the price so that they can boost their sales D) a price reduction by the makers of good B
A scientist who is studying earthquakes includes the impact of wind when performing some tests of damages to structures. This is an example of
A) failing to understand how to do scientific methodology. B) irrational behavior in noneconomic situations. C) accounting for every possible phenomena that may effect the problem under examination. D) failing to hold all other things constant.
Identify the correct statement
a. Demand is the total quantity of a product that people are willing, even if unable, to purchase at a given price. b. Demand for a product is the same as the quantity demanded of a product. c. Demand represents the different quantities of a good or service that provides consumers the same amount of utility. d. Demand is the quantity of a product that people are willing and able to purchase at different prices. e. Demand is the quantity of a product that producers are willing to produce at a particular price.
If indirect business taxes and depreciation were added to the national income, we obtain: a. Net National product
b. Gross National Product. c. Gross Domestic Product. d. Personal Income.