Other Things Equal, in an Open Economy, Monetary Policy to Offset

question 53

Multiple Choice

Other things equal, in an open economy, monetary policy to offset a contractionary gap will tend t​o

• A)​Lower the exchange value of the dollar and lower net exports.
• B)​Lower the exchange value of the dollar and raise net exports.
• C)​Raise the exchange value of the dollar and lower net exports.
• D)​Raise the exchange value of the dollar and raise net exports.

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Definitions:

Business Opportunities

Prospects for creating new business ventures or expanding existing ones, potentially leading to increased profit and growth.

Surveying

The technique, profession, and science of determining the terrestrial or three-dimensional positions of points and the distances and angles between them.

Earned Income

Revenue generated from the sale of goods and services, as opposed to donations or grants.

Revenue

The total income generated by a company from its activities, before any expenses are subtracted.