Considering Only Its Direct Effect on Income, Expansionary Fiscal Policy

question 96

Multiple Choice

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

• A)be ambiguous with respect to the trade deficit.
• B)increase a trade surplus.
• C)decrease a trade deficit.
• D)increase a trade deficit.

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Definitions:

Total Return

The overall gain or loss on an investment over a particular period, including dividends, interest, and capital gains.

Rate of Return

The net gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Percent Decline

A measurement of the decrease in the value or price of an asset or investment, expressed as a percentage.

Transfer Payments

Payments made by the government to individuals or other entities without the government receiving any goods or services in return.