Multiple Choice
Considering only its direct effect on income, contractionary monetary policy tends to:
A) be ambiguous with respect to the exchange rate but decrease the trade deficit.
B) be ambiguous with respect to the trade deficit but decrease the exchange rate.
C) decrease the exchange rate and increase the trade deficit.
D) increase the exchange rate and decrease the trade deficit.
Correct Answer:
Verified
Correct Answer:
Verified
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