How Does Expansionary Monetary Policy Affect Net Exports

question 207

Multiple Choice

How does expansionary monetary policy affect net exports?

• A)Expansionary monetary policy increases exports and reduces imports.
• B)Expansionary monetary policy reduces exports and increases imports.
• C)Expansionary monetary policy increases exports and increases imports.
• D)Expansionary monetary policy reduces exports and reduces imports.

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Definitions:

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.

Implementation

The process of putting a decision, plan, strategy, or law into effect.

Policy Process

The series of steps and actions involved in the formulation, adoption, and implementation of public policies.

Incrementalism

A policy-making process that involves small, slow, and gradual changes instead of large, rapid, or radical actions.