Which of the following is correct? A restrictive monetary policy will cause the
ID: 1113378 • Letter: W
Question
Which of the following is correct?
A restrictive monetary policy will cause the dollar to depreciate and Canadian net exports to decrease.
A restrictive monetary policy will cause the dollar to depreciate and Canadian net exports to increase.
A restrictive monetary policy will cause the dollar to appreciate and Canadian net exports to increase.
A restrictive monetary policy will cause the dollar to appreciate and Canadian net exports to decrease.
A)A restrictive monetary policy will cause the dollar to depreciate and Canadian net exports to decrease.
B)A restrictive monetary policy will cause the dollar to depreciate and Canadian net exports to increase.
C)A restrictive monetary policy will cause the dollar to appreciate and Canadian net exports to increase.
D)A restrictive monetary policy will cause the dollar to appreciate and Canadian net exports to decrease.
Explanation / Answer
Ans is D
Restrictive monetary policy or contractionary monetary policy makes domestic currency appreciates i.e. Dollar appreciates due to which net export decreases.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.