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:

Cumulative

Referring to something that increases or accumulates over time, such as cumulative voting rights or cumulative dividends.

Stated Value

A value assigned to no-par value stock by the issuing company's board of directors to serve as the stock's legal capital.

No-par Stock

Shares issued without a par value listed on the face of the stock certificate, allowing the company more flexibility in setting their value.

Redemption Value

The value at which a bond or other debt security can be redeemed before its maturity by the issuer.