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Author Question: If the Fed reduces the money supply to reduce inflation, a floating exchange rate will aid the Fed ... (Read 81 times)

skymedlock

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on: Apr 19, 2019

If the Fed reduces the money supply to reduce inflation, a floating exchange rate will aid the Fed in fighting inflation because


◦ as the money supply is decreased, the interest rate will increase, and the price of U.S. exports will fall and the price of U.S. imports will rise.
◦ as the money supply is decreased, the interest rate will increase, and the price of U.S. exports will rise and the price of U.S. imports will fall.
◦ as the money supply is decreased, the interest rate will increase, and the price of both U.S. exports and U.S. imports will rise.
◦ as the money supply is decreased, the interest rate will increase, and the price of U.S. exports and U.S. imports will fall.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by skymedlock on Apr 19, 2019

tsternbergh47

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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skymedlock

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Reply #2 on: Apr 19, 2019
Thanks


tsternbergh47

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Reply #3 on: Apr 19, 2019
Welcome :)


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