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Author Question: What effect does a contractionary monetary policy in the U.S. have on the foreign trade sector? ... (Read 93 times)

Shelles

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on: Jun 30, 2018
What effect does a contractionary monetary policy in the U.S. have on the foreign trade sector?
 
  A) The higher value of the dollar will decrease imports and increase exports.
  B) The higher value of the dollar will decrease exports and increase imports.
  C) The lower value of the dollar will decrease imports and increase exports.
  D) The lower value of the dollar will decrease exports and increase imports.

Question 2

Let S = y - (150 + 0.6y). Assume no government or foreign sectors. What is the consumption function?
 
  A) C = 150 + 0.6y B) C = -150 - 0.6y C) C = 150 + 0.4y D) C = -150 + 0.4y


Chocorrol77

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

A


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