AP Macroeconomics Question 216: Answer and Explanation

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Question: 216

10. An expansionary monetary policy tends to

  • A. improve the balance of trade.
  • B. have no effect on imports.
  • C. worsen the balance of trade.
  • D. have no effect on exports.
  • E. have an ambiguous effect on the balance of trade.

Correct Answer: C

Explanation:

(C)