An Expansionary Monetary Policy Results in Lower Interest Rates, Which

Multiple Choice

An expansionary monetary policy results in lower interest rates, which in turn

A) increases foreign demand for U.S. financial instruments, raising the international price of the dollar and reducing net exports.
B) increases the foreign demand for U.S. financial instruments, lowering the international price of the dollar and decreasing net exports.
C) reduces the international price of the dollar and increases net exports.
D) reduces the foreign demand for U.S. financial instruments and reduce net exports.