What Is the Relationship Between an Increase in Money Supply

question 59

Multiple Choice

What is the relationship between an increase in money supply and net exports?

• A) A monetary expansion leads to a depreciation of the home currency,and a decrease in net exports.
• B) A monetary expansion leads to a depreciation of the home currency,and an increase in net exports.
• C) A monetary expansion leads to an appreciation of the home currency,and a decrease in net exports.
• D) A monetary expansion leads to an appreciation of the home currency,and an increase in net exports.

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Definitions:

Proxy

A person authorized to act on behalf of another, especially in voting at a meeting or in corporate matters.

Agency

A relationship where one party (the agent) is authorized to act for another (the principal) in dealings with third parties.

Voting Trusts

Legal arrangements used to combine the voting power of shareowners by temporarily transferring their shares to a trustee, often used to control corporations.

Direct Suit

A direct suit is a legal action initiated directly by one party against another for the purpose of resolving a dispute or seeking damages.