Which of the Following Would You Expect to Decrease Both

question 153

Multiple Choice

Which of the following would you expect to decrease both interest rates and exchange rates? (Assume exchange rates are stated in terms of foreign currency per domestic currency.)

• A)contractionary monetary policy
• B)expansionary monetary policy
• C)contractionary fiscal policy
• D)expansionary fiscal policy
• E)Both B and C will decrease both interest rates and exchange rates.

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