Considering Only Its Direct Effect on Income, Contractionary Monetary Policy

question 15

Multiple Choice

Considering only its direct effect on income, contractionary monetary policy tends to:

• A)increase income and imports, shifting the U.S. trade balance in the direction of deficit.
• B)increase income and imports, shifting the U.S. trade balance in the direction of surplus.
• C)decrease income and imports, shifting the U.S. trade balance in the direction of deficit.
• D)decrease income and imports, shifting the U.S. trade balance in the direction of surplus.

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Definitions:

Enthymeme

An argument in which one premise is not explicitly stated, often used in persuasive speech and writing.

Missing Premise

An implicit assumption or statement required to make an argument logically sound but is not explicitly stated.

Traditional View

A perspective or belief system that is based on long-established customs, practices, or institutions.

Existential Import

This concept refers to statements that imply the existence of at least one instance of the subject being discussed.