An expansionary monetary policy by the Fed would tend to: Lower the U.S. inflati

Question

1. Lower the U.S. inflation rate, make exports more expensive,make imports cheaper, and lower the value of the dollar.
2. Lower the U.S. inflation rate, make exports cheaper, makeimports more expensive, and raise the value of the dollar.
3. Raise the U.S. inflation rate, make exports cheaper, makeimports more expensive, and raise the value of the dollar.
4. Raise the U.S. inflation rate, make exports more expensive,make imports cheaper, and lower the value of the dollar.

Explanation / Answer

Lower the U.S. inflation rate, make exports more expensive, make imports cheaper, and lower the value of the dollar.

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