Suppose that the Fed decides to decrease the growth rate of the money supply in the U.S. What is most likely to happen to the U.S. trade deficit, and to GDP?
A.
The trade deficit will rise, GDP will rise.
B.
The trade deficit will fall, GDP will rise.
C.
The trade deficit will rise, GDP will fall.
D.
The trade deficit will fall, GDP will fall.
Exam No：AP Macroeconomics Problem Set 3 Year：2024 Question No：APMacroeconomics2024AP0103
Answer:
D
Knowledge points:
4.5 The Money Market
4.6 Monetary Policy
Solution:
Download APP for more features
1. Tons of answers.
2. Smarter Al tools enhance your learning journey.
IOS
Download
Download
Android
Download
Download
Google Play
Download
Download