Multiple Choice
Suppose that the Fed decides to decrease the growth rate of the money supply in the United States.What is most likely to happen to the U.S.trade deficit and to GDP?
A) The trade deficit will fall; GDP will fall.
B) The trade deficit will rise; GDP will rise.
C) The trade deficit will fall; GDP will rise.
D) The trade deficit will rise; GDP will fall.
Correct Answer:
Verified
Correct Answer:
Verified
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