How Does Contractionary Monetary Policy Affect Net Exports in the Short

question 98

Multiple Choice

How does contractionary monetary policy affect net exports in the short run?

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

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Definitions:

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