If the United States Has a Current Account Deficit with England

question 58

Multiple Choice

If the United States has a current account deficit with England of $1 million,and the Bank of England sells $1 million worth of pounds in the foreign exchange market,then England ________ $1 million of international reserves and its monetary base ________ by $1 million.

• A)gains;rises
• B)gains;falls
• C)loses;rises
• D)loses;falls

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Definitions:

Situational Approach

A theory that suggests leadership effectiveness depends on the interaction between the leader's style and the specific situation or environment.

Directive Behaviors

Leadership actions that involve giving explicit instructions and clear guidelines to subordinates.

Supportive Behaviors

Actions by a leader that show concern for followers' needs and well-being, fostering a positive and supportive work environment.

Situational Leadership

A leadership style that suggests the best leaders adjust their leadership approach based on the maturity and capability of their followers or the specifics of the situation.