Which of the Following Is a Good Example of the Net

Multiple Choice

Which of the following is a good example of the net export or open economy effect of monetary policy?

A) An expansionary monetary policy causes net exports to rise, which helps to decrease unemployment.
B) An expansionary monetary policy causes net exports to fall, which helps to decrease inflationary pressures.
C) A contractionary monetary policy causes net exports to rise, which helps to decrease inflationary pressures.
D) A contractionary monetary policy causes net exports to fall, which helps to reduce unemployment.