Monetary Policy and U.S. Trade
A. Explain why the value of the U.S. dollar would decline if the United States pursued an expansionary monetary policy.
B. When the value of the U.S. dollar declines, what effects does this have on the price of American-made goods, on the U.S. trade balance, and on the U.S. capital account?
C. Describe the effects of an expansionary fiscal policy on trade and the exchange rate.