Which Approach Analyzes a Nation's Balance of Payments in Terms

question 115

Multiple Choice

Which approach analyzes a nation's balance of payments in terms of money demand and money supply?

• A) the expenditure approach
• B) the absorption approach
• C) the elasticity approach
• D) the monetary approach

---

Definitions:

Effector

An organ or cell that acts in response to a stimulus, often leading to a physiological response in the body.

Reaction Time

The duration between the presentation of a stimulus and the initiation of the muscular response to that stimulus.

Knee-Jerk Response

A reflex action of the leg moving away from a stimulus, specifically a quick kick generated by tapping the tendon below the kneecap.

Quadriceps Tendon

A tendon that connects the quadriceps muscle to the patella (kneecap) allowing for knee extension.