International and Domestic Markets: Dollar Depreciation
Suppose the Federal Reserve embarked on an expansionary monetary policy in order to fight a domestic recession in the United States. Which of the following would be a likely effect on the international market?
The international value of the dollar would increase in the foreign exchange market.
The United States would experience an decrease in foreign direct investment.
The United States would purchase more imports.
The United States would sell fewer exports.
United States investors would invest less of their money in foreign countries.