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NYC NYC
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8 years ago
If the Fed increases the money supply to fight recession, a floating exchange rate will aid the Fed in fighting recession because:
A) as the money supply is increased, the interest rate will decrease, and the price of U.S. exports and U.S. imports will rise.
B) as the money supply is increased, the interest rate will decrease, and the price of U.S. exports will fall and the price of U.S. imports will rise.
C) as the money supply is increased, the interest rate will decrease, and the price of U.S. exports will rise and the price of U.S. imports will fall.
D) as the money supply is increased, the interest rate will decrease, and the price of both U.S. exports and U.S. imports will fall.
Textbook 
Principles of Macroeconomics

Principles of Macroeconomics


Edition: 11th
Authors:
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JesslynJesslyn
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NYC Author
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#2
8 years ago
I was thinking the same, thank you
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