Given a System of Floating Exchange Rates, Other Things Equal

Multiple Choice

Given a system of floating exchange rates, other things equal an expansionary fiscal policy by the United States will cause

A) the dollar to appreciate and will decrease U.S. net exports.
B) the dollar to appreciate and will increase U.S. net exports.
C) the dollar to depreciate and will increase U.S. net exports.
D) the dollar to depreciate and will decrease U.S. net exports.