Which of the Following Would NOT Be a Result of a Contractionary

question 181

Multiple Choice

Which of the following would NOT be a result of a contractionary monetary policy?

• A) Interest rates would rise.
• B) Foreign goods would become more expensive to U.S. residents.
• C) Net exports would decline.
• D) Imports would rise.

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Definitions:

Stock Price

The cost of purchasing a share of a company in the stock market; it fluctuates based on supply and demand.

Dividend Income

Earnings distributed to shareholders, usually derived from the company's profits, for holding the company's stock.

Stock Split

A corporate action to increase the number of outstanding shares through a proportional division, reducing the stock price accordingly.