Question

Expansionary monetary policy tends to

a. lower the U.S. interest rate and increase the U.S. exchange rate
b. lower the U.S. interest rate and decrease the U.S. exchange rate
c. increase the U.S. interest rate and decrease the U.S. exchange rate
d. increase the U.S. interest rate and increase the U.S. exchange rate

Answer 1

The correct answer for this question is "c. increase the U.S. interest rate and decrease the U.S. exchange rate." Expansionary monetary policy tends to c. increase the U.S. interest rate and decrease the U.S. exchange rate. It brings a lot of impact to the United States especially on its economy.