McqMate
| Q. |
To financelarge U.S. federal Budget deficits, the Federal Reserve increases the money supply. This leads to a surplus of dollars world wide. What happens to the U.S. dollar and trade? |
| A. | The dollar appreciates in value, stimulating imports but curtailing exports. |
| B. | The dollar appreciates in value, stimulating exports but curtailing imports. |
| C. | The dollar depreciates in value, stimulating imports but curtailing exports. |
| D. | The dollar depreciates in value, stimulating exports but curtailing imports. |
| Answer» D. The dollar depreciates in value, stimulating exports but curtailing imports. | |
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