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AP® Macroeconomics

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Moderate

International and Domestic Markets: Dollar Depreciation

APMACR-XHYSNT

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?

A

The international value of the dollar would increase in the foreign exchange market.

B

The United States would experience an decrease in foreign direct investment.

C

The United States would purchase more imports.

D

The United States would sell fewer exports.

E

United States investors would invest less of their money in foreign countries.