If the Fed Pursues an Expansionary Monetary Policy

question 45

Multiple Choice

If the Fed pursues an expansionary monetary policy:

• A) the dollar will rise.
• B) U.S.imports from other countries will rise.
• C) U.S.exports to other countries will rise.
• D) aggregate supply will increase.

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Definitions:

Tariffs

Taxes imposed by a government on imported or exported goods.

Quotas

Limitations or targets set on quantities such as production, sales, or imports and exports, used in business practices and international trade.

World Trade

The exchange of goods and services across international borders, influenced by agreements, tariffs, and global economic policies.

Largest Importer

The country or entity that brings the highest volume of goods into its territory from other countries.