Considering Only Its Direct Effect on Income, Expansionary Monetary Policy

Multiple Choice

Considering only its direct effect on income, expansionary monetary policy tends to:

A) be ambiguous with respect to the exchange rate, while decreasing the trade deficit.
B) be ambiguous with respect to the trade deficit, while increasing the exchange rate.
C) decrease the exchange rate and increase a trade deficit.
D) increase the exchange rate and decrease a trade deficit.