A Contractionary Monetary Policy Decreases Net Exports by ________ Interest

question 34

Multiple Choice

A contractionary monetary policy decreases net exports by ________ interest rates and ________ the value of the dollar.

• A)lowering real;decreasing
• B)lowering real;increasing
• C)raising nominal;increasing
• D)raising real;increasing

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Definitions:

Strategy Implementation

The process of executing the steps and actions necessary to carry out a defined strategy.

Potential Course

A possible path or direction that can be taken in the future, often in the context of planning or decision-making.

Economies of Scale

A concept in economics that describes the cost advantage that arises with increased output of a product, leading to a decrease in the per-unit fixed cost as the scale of production is enlarged.

Downturn in Economy

A period when economic activity is declining, marked by decreased spending and increased unemployment.