If the Federal Reserve Made the Decision to Decrease the Money

question 63

Multiple Choice

If the Federal Reserve made the decision to decrease the money supply in the United States,this would lead to:

• A) an appreciation of the U.S.dollar.
• B) an increase in the relative price of U.S.exports.
• C) a decrease in AD.
• D) an appreciation of the U.S.dollar,an increase in the relative price of U.S.exports,and a decrease in AD.

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