Question: Question 6 [12 points] How will an expansionary monetary policy affect the trade balance, via interest rates? Expansionary Monetary Policy select answer Competitiveness decreases Competitiveness

the trade balance, via interest rates? Expansionary Monetary Policy select answer Competitiveness

Question 6 [12 points] How will an expansionary monetary policy affect the trade balance, via interest rates? Expansionary Monetary Policy select answer Competitiveness decreases Competitiveness increases The domestic currency depreciates The domestic currency appreciates Income decreases Income increases Interest rates decrease Interest rates increase Imports decrease Imports increase Price level decreases Price level increases Trade deficit decreases Trade deficit increases

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