Multiple Choice
Considering an economy with a current trade surplus and considering only the direct effect on income, an expansionary monetary policy tends to:
A) decrease the exchange rate and increase the trade surplus.
B) increase the exchange rate and increase the trade surplus.
C) decrease the exchange rate and decrease the trade surplus.
D) increase the exchange rate and decrease the trade surplus.
Correct Answer:
Verified
Correct Answer:
Verified
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