Multiple Choice
What effect does expansionary monetary policy have on the interest rate and the (flexible) exchange rate?
A) The interest rate will fall,and exchange rate will rise.
B) The interest rate will fall,and exchange rate will fall.
C) The interest rate will rise,and exchange rate will rise.
D) The interest rate will rise,and exchange rate will fall.
Correct Answer:
Verified
Correct Answer:
Verified
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