Consider an Open- Economy AD/AS Macro Model

question 76

Multiple Choice

Consider an open- economy AD/AS macro model. An expansionary fiscal policy will generally increase the government's budget _ _ and also tends to and thus _ net exports.

• A)surplus; appreciate the currency; decrease
• B)deficit; appreciate the currency; decrease
• C)deficit; appreciate the currency; increase
• D)deficit; depreciate the currency; decrease
• E)surplus; depreciate the currency; increase

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Definitions:

Social Cognitive Theory

A theory of learning and social behavior which proposes that new behaviors can be acquired by observing and imitating others.

Rewards

Benefits, often in the form of goods, services, or recognition, given to an individual as compensation or encouragement for their behavior or performance.

Modeling

The process of learning behaviors, attitudes, or emotional reactions through observing others.

Middle Childhood

A developmental stage that typically covers the ages from 6 to 12, characterized by increased cognitive and social abilities.