. Assume that the US economy expands and that the US Federal Reserve Bank, worried by rising inflation, decides to raise interest rates. Which of the following would not occur? A) The US dollar will appreciate.B) Interest rates in other countries will fall.C) The current account of the US's trading partners will improve.D) There will be a fall in US exports.

If there is an expansion in the United States, it will lead to arise inflation in the economy due to…

Answered: Assume that the US economy expands and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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. Assume that the US economy expands and that the US Federal Reserve Bank, worried by rising inflation, decides to raise interest rates. Which of the following would not occur?

A) The US dollar will appreciate.
B) Interest rates in other countries will fall.
C) The current account of the US's trading partners will improve.
D) There will be a fall in US exports.

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