if the Federal Reserve pursues a tight Monetary Policy, assuming hat all else remains unchanged, the impact of such policy would be to ______________in he United States relative o those in Europe and cause the U.S. dollar to ______________ versus the Euro.
The impact of these policy will be to "increase the interest rate, decrease the money supply / cause more inflow of euro" in the US relative to those in europe and that will cause the US dollar to "appreciate" against the Euro.
(I didnt have the options so i have provided all the possible ones.)
if the Federal Reserve pursues a tight Monetary Policy, assuming hat all else remains unchanged, the...