It Has Been Observed That a Change in Monetary Policy

question 190

Multiple Choice

It has been observed that a change in monetary policy in the United States

• A) impacts net exports.
• B) has little or no effect on foreign markets.
• C) leads to corresponding changes in other countries.
• D) has only short run influences.

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Definitions:

Forgoing

The act of giving up or going without something, often in the context of making financial or investment decisions.

Discount

A reduction from the usual cost of something, or in finance, the process of determining the present value of future cash flows by applying a discount rate.

Minimum Compensating Balance

The lowest balance that a business must maintain in its bank account as a requirement for banking services or loans.

Line-Of-Credit

A financial arrangement in which a bank or other lender provides a maximum loan amount that the borrower can draw from as needed, but does not exceed over a specified period.