A contractionary monetary policy causes O A. higher interest rates, which increases the foreign demand for US. financial instruments, which causes interest rates to decrease. There is no effect on net exports. O B. lower interest rates, which decreases the foreign demand for U.S. financial instruments, raising the international price of the dollar and increasing net exports. O C. higher interest rates, which decreases the foreign demand for U.S. financial instruments, raising the international price of the dollar and increasing net exports. O D. higher interest rates, which increases the international price of the dollar and decreases net exports