A contractionary monetary policy tends to be more effective than a contractionary fiscal policy at strengthening the value of the exchange rate, because a contractionary monetary policy:
A. increases the interest rate and decreases imports, while contractionary fiscal policy decreases both the interest rate and imports.
B. increases the interest rate and decreases exports, while a contractionary fiscal policy decreases both the interest rate and exports.
C. decreases the interest rate and increases imports, while a contractionary fiscal policy increases both the interest rate and imports.
D. decreases the interest rate and increases exports, while a contractionary fiscal policy increases both the interest rate and exports.
Answer: A
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A) the individual seller. B) the individual demander. C) market demand and market supply. D) a few of the sellers.