Which of the Following Policies Tends to Cause the Dollar

question 172

Multiple Choice

Which of the following policies tends to cause the dollar to appreciate?

• A) an expansionary monetary policy
• B) an expansionary fiscal policy
• C) a contractionary fiscal policy
• D) a combination of an expansionary monetary policy and a contractionary fiscal policy

---

Definitions:

Industrially Advanced Countries

Nations characterized by high levels of industrialization, technological advancement, and higher standards of living.

Economic Growth

The increase in the value of goods and services produced by an economy over time, typically measured as the percent change in real GDP.

Temporary Workers

Individuals employed on a short-term basis, often to meet seasonal demands, cover for absent employees, or complete particular projects.

Debt Relief

The partial or total remission of debts, especially those owed by developing countries, by creditors, often to promote economic stability and development.