Considering Only Its Direct Effect on Income, Expansionary Fiscal Policy

question 80

Multiple Choice

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

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

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Definitions:

Serotonin

A neurotransmitter in the brain involved in the regulation of mood, appetite, and sleep, with a role in depression and anxiety disorders.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, regulating heart rate, blood pressure, and blood sugar levels.

Psychodynamic Theory

A psychological framework focusing on unconscious processes and childhood experiences affecting current behavior and feelings.

Unconscious Processes

Mental processes not directly accessible to consciousness but that influence judgments, feelings, or behavior.