Considering Only Its Direct Effect on Income, Expansionary Monetary Policy

question 79

Multiple Choice

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

• A)be ambiguous with respect to the exchange rate, while decreasing the trade deficit.
• B)be ambiguous with respect to the trade deficit, while increasing the exchange rate.
• C)decrease the exchange rate and increase a trade deficit.
• D)increase the exchange rate and decrease a trade deficit.

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Definitions:

Attributions

The process of explaining the causes of behaviors and events, which can be internal (personal factors) or external (situational factors).

Personally Relevant

Pertains to information or situations that hold significant importance or consequence to the individual on a personal level.

Motives

Internal drives or reasons that prompt individuals to act in certain ways.

Self-Fulfilling Prophecies

Predictions that directly or indirectly cause themselves to become true, due to positive feedback between belief and behavior.