Contractionary monetary policy:

A. increases the U.S. interest rate and decreases the U.S. exchange rate.
B. increases the U.S. interest rate and increases the U.S. exchange rate.
C. lowers the U.S. interest rate and increases the U.S. exchange rate.
D. lowers the U.S. interest rate and decreases the U.S. exchange rate.


Answer: B

Economics

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Economics