If the Bank of England reduces the money supply to reduce inflation a floating exchange rate will aid the Bank of England in fighting inflation because ? | MCQ Hive

Economics Mcqs

Q If the Bank of England reduces the money supply to reduce inflation a floating exchange rate will aid the Bank of England in fighting inflation because ?

A A. As the money supply is decreased the interest rate will increase and the price of uk exports will rise and the price of uk imports will fall
B B. As the money supply is decreased the interest rate will increase, and the price of uk exports will fall and the price of uk imports will rise
C C. As the money supply is decreased the interest rate will increase and the price of uk exports and uk imports will fall.
D D. As the money supply is decreased the interest rate will increase and the price of both uk exports and uk imports will rise

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