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Considering Only Its Direct Effect on Income, an Expansionary Monetary

Question 3

Multiple Choice

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


A) increase a trade deficit and decrease the exchange rate.
B) increase a trade deficit and increase the exchange rate.
C) decrease a trade deficit and decrease the exchange rate.
D) decrease a trade deficit and increase the exchange rate.

Correct Answer:

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