Question

If the Federal Reserve increases the money supply, how will the interest rate, theinternational value of the dollar, and imports be affected? International Value Interest Rate of the Dollar Imports

Answer 1

Decrease

Step-by-step explanation:

• Due to the decrease in the interest rates the international values of the dollar will also decrease along with the imports that also will fall.

• The federal reserves issue securities in a large bank the increase of the supply can lead to a decrease of the feds selling the public securities through the increase of the money supply. This will lead to decrease of dollars.