In an Open Economy, Contractionary Monetary Policy Will Have a Secondary

Multiple Choice

In an open economy, contractionary monetary policy will have a secondary effect on GDP because:

A) net exports will fall due to the lower foreign exchange value of the dollar.
B) net exports will rise due to the lower foreign exchange value of the dollar.
C) net exports will fall due to the higher foreign exchange value of the dollar.
D) net exports will rise due to the higher foreign exchange value of the dollar.