Without Considering the Effect That a Change in the Value

question 14

Multiple Choice

Without considering the effect that a change in the value of a currency might have on trade, the net effect of a contractionary fiscal policy is:

• A)ambiguous with respect to the exchange rate, but positive with respect to the trade balance.
• B)ambiguous with respect to the trade balance, but positive with respect to the exchange rate.
• C)negative with respect to the exchange rate and positive with respect to the trade balance.
• D)positive with respect to the exchange rate and negative with respect to the trade balance.

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Definitions:

Racial Categories

Classification systems used to group people based on perceived or actual shared physical characteristics and ancestry.

Heterosexuality

The sexual attraction or sexual behavior between individuals of the opposite sex.

Implicit Assumption

An implicit assumption is an unstated belief or understanding that underlies and influences thoughts, actions, and decisions without being directly expressed or acknowledged.

Overt Racism

Blatant and openly exhibited racial prejudice and discrimination.