Hi I am confused why expansionary monetary policy will reduce the net exports.
Since it cause depreciation of domestic currency which will make the goods cheaper to other countries which will increase the exports, am I right?
Expansionary policy INCREASES net exports.
maybe you should consider the short-run and long-run view?
You’re multiplying threads:
http://www.analystforum.com/forums/cfa-forums/cfa-level-ii-forum/91311474