Author Question: What effect does a contractionary monetary policy in the U.S. have on the foreign trade sector? ... (Read 103 times)

Shelles

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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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Answer to Question 1

B

Answer to Question 2

A



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