If the Fed raises the federal funds rate so that the exchange rate rises, then imports ________ and exports ________. a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease

If the Fed raises the federal funds rate so that the exchange rate rises, then imports and exports . a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 25CTQ: If a countrys currency is expected to appreciate in value, what would you think will be the impact...

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If the Fed raises the federal funds rate so that the exchange rate rises, then imports ________ and exports ________.

a. increase; increase

b. increase; decrease

c. decrease; increase

d. decrease; decrease

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