Statement I: Easy money tends to make our exports cheaper and our imports more expensive.
Statement II: The Fed was able to help end the recessions of 1980 and 1981 by relaxing credit and driving down interest rates.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Easy Money

A monetary policy stance characterized by low interest rates and high availability of credit to encourage economic growth.

Exports

Products or services made in one country and purchased by consumers in a different country, adding to the exporting nation's overall economic output.

Interest Rates

The cost of borrowing money or the return for investing money, usually expressed as a percentage of the principal per period of time.