Considering Only Its Direct Effect on Income, Expansionary Monetary Policy

question 88

Multiple Choice

Considering only its direct effect on income, expansionary 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:

Adaptive Ways

Strategies or mechanisms that individuals use to adjust to new conditions or environments in a positive manner.

Activity Theory

Theory of aging that holds that to age successfully a person must remain as active as possible.

Disengagement Theory

A theory suggesting that aging involves an inevitable process of withdrawal from social relationships and roles, leading to increased introspection and self-focus.

Compensation Theory

A hypothesis suggesting that individuals will excel in one area to balance out deficits in another area.